Read the text, answer the questions, write a summary and reproduce the text.

1. What does microeconomics study? 2. Whose economic behaviour is studied by microeconomics? 3. How are individuals considered by microeconomics? 4. When did microeconomic approach dominate in economics? 5. When did economists’ interest in macroeconomics grow? 6. How is economy considered in macroeconomics? 7. What stimulated the development of macroeconomics? 8. What problems were analyzed in the 1930s? 9. What is studied by development economics?

Areas of Economics

There are three main approaches to economics: microeconomics, macroeconomics, and development economics.

Microeconomics focuses on individual economic units. The economic behaviour of either individual consumers or firms or industries is studied by microeconomics. The distribution of products and income among all these units is also analyzed by microeconomics. In this field of economics individuals are considered both as suppliers of labour and as consumers of labour and capital.

There was a long period in the 19th and early in the 20th centuries when microeconomic questions dominated in economics. In the 20th century economists’ interest in forces that affect income, employment and prices grew. They considered economy in all its relationships.

The term “macroeconomics” was first used in the 1930s. The world depression that began in 1929 required the study of such macroeconomic questions as achievement of full employment and economic growth by means of proper government policies. This area of economics was developed by the British economist John Maynard Keynes.

The third main field of economics, that is, development economics, studies the factors of economic growth and how these factors are used by governments in order to achieve high living standards.

1.14. Complete the sentences by putting the verbs in brackets into the Present Simple or Present Continuous.

1. I (look at) the details on the screen right now. 2. I (look at) the sales results in detail every month. 3. The production line (not work) at weekends. 4. The production line (not work) at the moment. 5. Yes, I agree. I (think) it’s a good idea. 6. I (think) about it. I’ll let you know tomorrow. 7. Ann (stay) at the Astoria while she’s in Madrid this month. 8. Ann (stay) at the Astoria when she’s in Madrid. 9. We (take) a sample for testing once a day. 10. We (take) a big risk if we go ahead with the project. 11. They (be) usually very flexible if we need to change the order.

1.15. Choose the correct form of the verb.

1. A: Did you get / got the email I sent you yesterday?

B: Yes, thanks, I did / got.

2. How you felt / did you feel when they told / did tell you about moving offices?

3. A: Did you tell / told him about the change of plans?

B: Yes, I told / I did.

4. I didn’t see / didn't saw the reason for the delay, so I got / did get angry.

5. A: What was she doing this morning?

B: She interviewed / was interviewing candidates for sales job.

6. A: How did Brenda spend her holiday?

B: Most days she went / was going to the beach.

7. A: What happened after you launched the product?

B: While we promoted / were promoting it, our main competitor dropped / was dropping their prices.

1.16. Rewrite these sentences, putting the verbs into the Passive. Keep them in the same tense, and removethey, we, he, etc.

Example: Many companies produce furniture → Furniture is produced by many companies.

1. Banks provide new services for consumers. 2. They use models in order to study actual relations in an economy. 3. The economists predicted the growth of unemployment. 4. We consider individuals as suppliers of labour and capital. 5. The government achieved high employment. 6. The economist chose correct methods and models for his analysis. 7. They employ many workers in the service sector. 8. They developed mining industry in the 19th century in Great Britain, but in the 20th century they closed down many mines. 9. He wrote the book in 1968. 10. They followed these principles in the analysis of the economic situation.

1.17. Match the headlines (1–4) to the stories (a–b).

1.Factory to close 2.Sale to stop 3.Brin Bros to close for one month 4.Zephyr in the Orient	a.Zephyr Cycles are going to be available in China after the company launches its products there next year.	c.The Bestco chain of supermarkets is going to stop selling all processed fish products from Italy, Spain and Greece as a result of recent pollution in the Mediterranean.
b.The Pro-tech company announced yesterday that it is going to close its factory in Prague and concentrate production in its Oslo plant.	d.Brin Bros' main London department store is going to close for all of September this year to allow extensive modernization of the store.