1. Answer the questions:

1. What do young people discover while watching television commercials?

2. What economic roles do they settle into?

3. What can be said to prove that wants and needs are satisfied through the consumption (use) of goods and services?

4. How to distinguish between goods and services?

5. What evidence suggests that human wants and needs ate infinite (unlimited) while our resources are finite (limited)?

6. What is the major difference between the roles of a consumer and a producer?

7. What are the categories in which consumer goods can be divided?

8. In what way is scarcity related to different types of resources?

9. What are the basic economic questions facing both nations and individuals?

10. Is there a difference between how the government and how the customers answer

basic economic questions?

11. What is the basic service your educational institution provides you and your

community with?

12.How does it answer each of the four basic economic questions?

2. Say whether these statements are true or false, and if they are false say why.

1. People get acquainted with economics when they are still very young.

2. People make important economic discoveries only when they are old.

3. There is no gap between what people want and what they can have.

4. People settle only into one role, the role of a consumer.

5. In the role of a consumer a person makes the goods or provides the services.

6. Consumer goods are products that satisfy people's economic needs or wants.

7. All consumer goods last long.

8. Most foodstuffs are in the perishable category.

9. Students working after school or during the summer to earn money for buying some of the things they want are learning about the role of a producer.

10.Outputs (goods and services) are produced from inputs (resources) sometimes called factors of production. These factors are land, labour and capital.

UNIT 10

Money and economies

Before reading the text study the vocabulary:

Vocabulary

enormous part – огромная часть

to make smb do smth – заставить кого-либо сделать что-либо

to go round – вертеться

to represent – представлять

particularly – особенно

medium of exchange – средство обмена

to obtain – получать

daily needs – повседневные нужды

rent – рента

interest – процент от вкладов

profit – доходы

reward – вознаграждение

to rent out to smb. – сдать в аренду кому-либо

to lend – давать взаймы

wages – зарплата

savings – сбережения

afford – позволить

local authorities – местные власти

Money and economies

What part does money play in an economy? The answer is an enormous part. Money makes the world go round, particularly the free-enterprise world. Money represents control of goods and services. It is the medium of exchange, by which ownership of goods and the provision of services is obtained. We all need money if we are to buy a basket of goods and services for our daily needs. We must, therefore, continually obtain a supply of money. How do we get it? There are four chief ways. We get it as rent, interest, wages or profits.

Rent is the reward to those who own land. Some people are lucky and own land, which they can rent out to others, or use to grow food.

Interest is the reward paid to those who have capital (money savings) and can lend it out to those who need capital.

Wages and salaries are the rewards to labour. Most of us have no land, and savings to earn enough interest to live on. What we do have is our health and strength and the ability to work. We therefore seek employment of one sort or another and in return are paid wages or salaries.

Profits are the reward to enterprise. Who is it uses the land, the capital and the labour, and can afford to pay out the rent, interest and wages that the rest of us depend upon? It is the entrepreneurs - the enterprising people who set up firms and companies, or organize such official activities as the services provided by local authorities and central governments. They organize the provision of goods and services and if they are successful the profits made become their reward for the enterprise they have shown.

Exercises

1. Find Russian translations of the following words and phrases of the text:

To go round, to make smb do smth., rent, medium of exchange, daily needs, wages, salary, to afford, profit.

2. Find English equivalents to the following words and phrases of the text:

Сбережения, процент от вкладов, представлять, местные власти, повседневные нужды, сдавать в аренду кому-либо, вознаграждение, получать, давать взаймы.

3. True or false statements. After reading the text agree or disagree with the following statements:

1. Money plays a very small part in an economy.

2. Money represents control of goods and services.

3. We get a basket of goods and services for our daily needs as a gift from the government.

4. People who own land give it to others people free.

5. We sell our ability to work and get money for it.

4. Fill the gaps in the text with the words given below:

Daily needs, to obtain, wages and salaries, profit, makes, go round, reward.

1. Money ... the world ....

2. We all need money to by goods and services for our. . . .

3. There are four chief ways . . . money.

4. Rent is the ... to those who own land.

5. ... and . . . are the rewards to labour.

6. ... are the rewards to enterprise.

5. Translate the text from Russian into English using the Vocabulary of the text:

Деньги заставляют мир вертеться. Они играют огромную роль в экономике. Нам всем нужны деньги, чтобы купить корзину товаров и услуг для наших повседневных нужд. Мы получаем деньги в качестве Ренты, процентов от вкладов, зарплаты и прибыли.

Short Revision and Self-Control of the Main Statements

6. Close the right-hand side of the page with a sheet of paper and move it downwards answering the questions and checking yourself?

Questions	Answers
1. What are the three types of economies?	Free-enterprise (market) economics, centrally-planned and mixed economics
2. What is money?	Money is a medium exchange
3.What is rent?	Rent is the reward to those who own land
4.What is interest?	Interest is the reward paid to those who have capital (money savings) and can lend it out to those who need capital
5. What are wages and salaries?	Wages and salaries are the rewards to labour
6. What are profits?	Profits are the reward to enterprise