Exercises

1. Read and translate the words without a dictionary.

Factor, system, services, resource, economy, minerals, rent, economist, machine, capital, concept, risk, innovative, idea.

2. Read the words and say what part of speech they belong to. Translate the words.

Creation, entrepreneurship, natural, factor, employee, managerial, owner, physical, production, labour, refer, productive, organizational, entrepreneur, managerial, commonly.

3. Form nouns from the following verbs:

to create, to develop, to produce, to relate, to organize, to consume, to pay, to represent, to advertise.

4. Translate the words of the same root.

1. To produce, productive, production, producer. productively.

2. Consumption, to consume, consumer

3. Creative, to create, creation, creator.

4. Owner, to own, own, ownership.

5. Representative, to represent, representation.

5. Give definitions of the words and word combinations given below.

Capital, interest, natural resources, rent, human resources, entrepreneurship, wages.

6. Form Participle II from the following words

To spend, to call, to speak, to drive, to pay, to own, to represent, to use.

7. Transform the sentences from the Active Voice into the Passive Voice.

1. Most firm need managerial and organizational skills of businessmen to produce goods and services.

2. Nature provides people with natural resources.

3. A tenant pays rent to the owner of land.

4. Business people use tools and machines to produce goods and services.

5. Economists call the physical and mental effort of people human resources.

6. Entrepreneurs put their risks and innovative ideas into the business.

8. Answer the questions:

1. What are the factors of production?

2. What is the fuel that drives the economy?

3. What are the natural resources?

4. What is called “the price paid for the use of labour”?

5. What is the capital?

6. What is the role of entrepreneurship in production?

9. Translate the sentences into English.

1. Факторы производства – это ресурсы, используемые для производства товаров и услуг.

2. Каждый фактор производства выполняет определенную функцию.

3. Владельцы факторов производства получают вознаграждение за их использование.

4. Рента – это плата за использования земли, заработная плата – оплата труда, а процент – доход за использования капитала.

5. Предприниматель получает прибыль, если его бизнес успешен.

6. Деньги, оставшиеся после оплаты ренты, зарплаты и процентов, являются прибылью предпринимателей.

TEXT B.

Microeconomics and macroeconomics

Economists have two ways of looking at economics and the economy. One is the macro approach, and the other is the micro. Macroeconomics is the study of the economy as a whole; microeconomics is the study of individual consumers and the business firm.

Macroeconomics examines questions such as how fast the economy is running; how much overall output is being generated; how much total income. It also seeks solutions to macro-economic problems such as how employment can be increased, and what can be done to increase the output of goods and services. Microeconomics examines cause-and-effect relationships that influence choices of indi­viduals, business firms and society.

It is concerned with things such as scarcity, choice and opportunity costs, and with production and consumption. Principal emphasis is given by microeconomists to the study of prices and their relationship to units in the economy.