V. Answer the following questions:

1 Why must all societies deal with scarcity?

2 What is rent?

3 What is wages?

4 What is interest?

5 What is capital?

6 What is macroeconomics (microeconomics)?

7 When did the development of modern economics begin?

8 What questions must every society provide answers to?

9 How do you understand the term «factors of production»?

VII. Translate into English:

1. Бажання людини безмежні, а кошти, необхідні для здійснення цих бажань, надто обмежені. 2. Перед кожним суспільством постає проблема нестатку. 3. В кожному суспільстві існує проблема дефіциту.4. Кожен у будь-якому суспільстві повинен робити вибір щодо речей, які бажає.

5. Економічні чинники впливають на рішення у світі бізнесу. 6. Ресурси, необхідні для утворення товарів і послуг, називають чинниками виробництва. 7. Заробітна плата — це та винагорода, яку отримують робітники за свою працю. 8. Купуючи фабрики, машини та інші засоби виробництва, ділові люди часто вживають термін «капітал». 9. Кожний чинник виробництва має місце в нашій економічній системі і кожний виконує відповідну функцію. 10. Люди створюють капітал щоб виробляти інші товари та послуги.

Part 2

I. Read and memorize the following words and word — combinations:

activity — діяльність

to achieve — отримувати

to be concerned with — бути пов’язаним з…

to consume — споживати

costs - витрати

distribution — розподіл, розповсюдження

factors of production — чинники виробництва

full employment - повна зайнятість

goods and services — товари та послуги

household — домогосподарство

to obtain — отримуваит

output — готова продукція

owner — власник

revenue - дохід

scarce resources — обмежені ресурси

standard of living — рівень життя

to be willing and able — бути готовим та спроможним

II. Text a What is economics

The economy is a part of our everyday lives. We spend much of our lives working to produce goods and services, We spend a good part of the remaining time consuming those goods and services.

Economics — is the study of economies, the study « what economists do». In general terms, economics is a social science concerned with using scarce resources to obtain the maximum satisfaction of the unlimited material wants of society. It studies the production, distribution, trade, and consumption of goods and services. The aim of economics is to help people to obtain the greatest possible satisfaction or utility out of the resources at their disposal — to do the best they can with what they have.

The main questions that an economy must answer are the following:

1. What to produce, and in what quantities?

2. How to produce?

3. For whom to produce?

When economists examine an economy, they not only want to know how the economy answers the three basic questions, but also how well. They focus on the means available for achieving major economic goals. These goals are:

a. Economic growth — the production of more and better goods and services, or a higher standard of living is desired.

b. Full employment — suitable jobs should be avail-able for all who are willing and able to work.

c Economic efficiency — we want to get the maximum benefits at the minimum costs from the limited productive resources.

d. Price level stability — inflation and deflation should be avoided.

Businesses must buy resources to produce goods and services, their finished products are then sold to households in order to get revenues. The available factors of production — land, labor, and capital. Because resources are scarce, an economy cannot have an unlimited output of goods and services. As a result, choices must be made on which goods and services to produce and which to forgo.

Since the 1930s economics is divided into two parts: macroeconomics and microeconomics. Macroeconomics focuses on the behaviour of an entire economy — the «big picture». In macroeconomics we worry about such national goals as full employment, control of inflation, and economic growth. The main task of macroeconomics is to understand and improve the performance of the economy as a whole. Microeconomics is concerned with the details of this «big picture ». In microeconomics we focus on the individuals, firms, and government agencies. It concentrates upon the output or price of a specific product, the number of workers employed by a single firm, the revenue or income of a particular firm or household.