- •Unit three
- •Comments:
- •Exercise 6. Find words in the text synonymous in meaning to the following. Read the sentences containing them.
- •Exercise 9. What economic terms given in the text do the following definitions refer to?
- •Exercise 12. Translate the texts into Ukrainian.
- •Questions for economic reasoning and discussion
Questions for economic reasoning and discussion
Which of the following problems are studied by microeconomics and which are macroeconomic issues?
The allocation of a family’s limited budget.
How will an increase in the price of cigarettes affect smoking habits?
Why was the 1981-1982 recession so severe?
Does a high government budget deficit tend to slow the rate of economic growth?
Why does Japan’s economy grow faster than the United States’ economy, while Britain’s grows slower?
Why does IBM sell more computers than Apple?
What caused the rate of inflation to rise rapidly in Ukraine in 2008?
2. Choose the right variant. Only one is possible.
What is economics?
Economics is the study of money and financial systems.
Economics is the study of business.
Economics is a behavioral science that studies how people make choices.
Economics is a natural science that studies the resources that nature and previous generations have provided.
Economics is defined as the social science that studies
how a person can get everything he or she wants.
the reason money exists.
the way to eliminate choices in our decisions.
the choices that societies, and the people and institutions that form societies, make in dealing with the issue of scarcity.
3. Which branch of economics studies the decisions of individual consumers and individual firms?
macroeconomics
positive economics
normative economics
microeconomics
Microeconomics concentrates on
looking at the operation of the entire economy.
examining the behavior and operation of the individual units or sectors that make up the economy.
our government’s monetary policy.
the levels of employment and inflation.
Macroeconomics focuses on
the whole national economy.
the behavior of individual firms.
the behavior of individual households.
markets.
Macroeconomics studies
the overall effect of individuals’ choices on national and global economies.
the individual choices made by individuals.
how firms make profitable output decisions.
None of the above answers is correct.
The study of the total effects that individual, business, and government choices have on the national and global economies is
economics.
scarcity.
microeconomics.
macroeconomics.
In economics, there are two types of statements. One describes what is; the other describes what ought to be. These statements are
macroeconomic and microeconomic.
fair and unfair.
right and wrong.
positive and normative.
An objective statement about “what is” is called a(n)
Normative statement
Positive statement
Economic model
Economic theory
Economic models
reflect trade-offs.
are based on custom.
simplify and therefore do not reflect the full complication of reality.
reflect all the real world conditions.