V. Answer the following questions:

1. What is «the economy»?

1. What do you need to produce the textbook and what are these inputs called?

2. Why are we compelled to choose among goods?

3. How is economics often defined?

2. What do we call the law according to which we must give , up everincreasing quantities of other goods and services in order to get more of a particular good?

4. What are the essentials of the market mechanism?

5. What is economics all about?

VI. Define the terms:

law of increasing opportunity costs economy

production possibilities economics

factors of production economic growth

opportunity costs market mechanism

VII. Translate into English:

1. EKOHOMisna Hayna BMBHae bhpo6hhu,tbo Ta cno>KHBaHHsi. 2. Hhhhmkm BMpo6Hnu,Taa — u,e 3eMnn, TpyflOBi pecypcM, oc-hobhmm Kaniran (o6naflnaKHfl Ta 6yfliflni), akhmm mm KopMcrye-moch flna BMpo6HMu,TBa roeapiB i nocnyr. 3. Mm He Mox<eMo BuroTOBnsiTH ace, tu,o ^MM 6a>KaeMO, i b KinbKOCTfix, swi hbm noTpi6H.i, ocKintKM pecypcw 3asH<flM o6Men<eHi. 4. 06mc-x<eHicTb pecypcis cTaBMTb Hac nepefl bm6opom. 5. EKOHOMNHa

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HayKa 3awMaeTbc*i nuTaHHfiMM po3MimeHHfl pecypcie, sikhx He-Mae b flocraTHiH KinbKOCTi, Ta tum, »k Tx Kpatue BHKopiiCTOBy-BaiM. 6. HaM flOBOflMTbCH BiflMOBnnTMcn bia Bunycuy neBHoro BMfly TOsapy, mo6 3a6e3neHMTM BMnycK imuoro. 7. TonoBHHM y pHHKOBOMy MexaHi3Mi e ^mhhmk ujh, rkmm BnnHBae Ha po3iun-

peHHfl a6o CKOpOMeHHfl BMpo6HMU,TBa. 8. SIkiho TOBapOBMpo6-

hmkm 6aHMTMMyTb, U40 npoflaw neeHoro BMfly rosapy i u,ihm Ha Hboro 3pocTatoTb, bohm 36inbiijyBaTHMyTb BHnycK u,boro TOBapy.

VIII. Read and dramatize the following dialogue:

A.: People worry about love, the weather, and the economy. But not necessarily in that order. According to public-opinion polls, the economy is always one of our foremost concerns.

B.: Yes, people worry about such questions as:

• what forces shape the economy;

• what determines how many jobs will be available;

• how much income people will receive;

• what goods will be produced;

• how much pollution will be created.

A.: And I was always wondering what, if anything, we can do to improve the economy's performance?

B.: I see. And when asked what the country's most important problem was, three out of four Americans pointed to the drug problem. However four out of ten cited economic concerns, including unemployment, government spending, budget deficits and inflation.

A..' But for many people, of course, concern for the economy goes no further than the price of tuition or the fear of losing a job.

B.: ( can't agree with you, because many others, however, are becoming increasingly aware that their job prospects and the prices they pay are somehow related to national trends in prices, unemployment, and economic growth.

A.; So you think that most of us now recognize the importance of major economic events.

8.; Yes, and that is why so many people worry about such abstractions as unemployment rates, inflation, economic growth, trade deficits, and budget deficits.

A.: But despite the widespread concern for the economy, few people really understand how it works. And you can hardly blame them.

6.: Certainly. The significance of billion dollar changes in output is easily lost on people who are trying to figure out how to pay this month's rent or next semester's tuition.

A.: You see, «the economy» as if abstract might seem, as very much a part of our everyday lives. We spend most of our lives working to produce the goods and services that flow from our factories and offices.

8,: Oh! And we spend a good part of the remaining time consuming those same goods and services. During much of the time left over, we worry about what to produce or consume next.

A.: Interest in the workings of the economy intensifies when we have some immediate stake in its performance. The loss of a job, for example, can rivet one's attention on the causes of unemployment. A tuition increase may start you thinking about the nature and causes of inflation.

6.; And high rents can start you thinking about the demand for housing in relation to its supply.

A.: So what we seek to determine, then, is not simply whether we are involved in the economy — a fact nearly everyone can accept with a shrug — but more important, how we are involved and where our interests lie.

S.: Right you are.

IX. Make up your own dialogue using the following expressions:

to satisfy desires available resources

to make difficult choices to allocate scarce

to get the most from what one has got resources

to make the best use of scarce resources economic growth

an expansion of production possibilities trade deficit

unemployment rates inflation