VIII. Give the terms for the following explanations.

1. The branch of economics offering a detailed treatment of individual decisions about particular commodities.

2. Economic statements offering prescriptions or recommendations based on personal value judgements.

3. The value of all goods and services produced in the economy in a given period such as a year.

4. The percentage of labour force without a job.

5. A measure of the average level of prices of goods and services in the economy, relative to their prices at some fixed date in the past.

6. Economic statements dealing with objective or scientific explanations of the working of the economy.

7. The branch of economics emphasizing the interactions in the economy as a whole.

8. A curve which shows, for each level of the output of one good, the maximum amount of the other good that can be produced.

9.The situation in which, as more workers аге employed in an industry, each additional worker adds less to total output than the previous additional worker added.

10. А resource for which the demandat а zero рrice would exceed the available supply.

IX. Complete the article with prepositions where necessary:

Microeconomics and macroeconomics

Microeconomics looks __ (1) __at interactions through individual markets, given scarcity and government regulation. A given market might be for a product, say fresh corn, or the services of a factor __ (2) __ production, say bricklaying. The theory considers aggregates __ (3) __ of quantity demanded by buyers and quantity supplied by sellers __ (4) __ each possible price per unit. It weaves these together to describe how the market may reach equilibrium as to price and quantity or respond __ (5) __ of market changes over time.

This is broadly termed supply and demand analysis. Market structures, such as perfect competition and monopoly, are examined as to implications __ (6) __ for behavior and economic efficiency. Analysis __ (7) __of change __in (8) __ a single market often proceeds from the simplifying assumption that behavioral relations in other markets remain unchanged, that is, partial-equilibrium analysis. General-equilibrium theory allows __ for(9) __ changes __ (10) in__ different markets and aggregates across all markets, including their movements and interactions toward equilibrium.

Macroeconomics examines the economy as a whole to explain broad aggregates and their interactions "top down," that is, using a simplified form __ of(11) __ general-equilibrium theory. Such aggregates include national income and output, the unemployment rate, and price inflation and subaggregates like total consumption and investment spending and their components. It also studies effects __of (12) __ monetary policy and fiscal policy.

__ (13) __ at least the 1960s, macroeconomics has been characterized __ (14) __ further integration as to micro-based modeling of sectors, including rationality __ (15) __ players, efficient use __ (16) __ market information, and imperfect competition. This has addressed a long-standing concern __ about(17) __ inconsistent developments of the same subject.

Macroeconomic analysis also considers factors affecting __ (18) __ the long-term level and growth __ (19) __ national income. Such factors include capital accumulation, technological change and labor force __ (20) _-_ growth.

X. Read the text and choose the correct word or words from A, B, C or D to fill in each gap:

Macroeconomic analysis

Macroeconomic analysis broadly focuses on three things: national output, unemployment and inflation. Output, the most important concept of macroeconomics, refers to the total amount of goods and services a country produces, commonly known as the gross domestic product. The figure is like a snapshot of the economy at a certain point in time.

When referring to GDP, macroeconomists tend to use __ (1) __ GDP, which takes inflation into __ (2) __, as opposed to nominal GDP, which __ (3) __ only changes in prices. The nominal GDP figure will be higher if inflation goes up from year to year, so it is not necessarily indicative of higher output levels, only of higher prices.

The one __ (4) __ of the GDP is that because the information has to be collected after a specified time period has finished, a figure for the GDP today would have to be an estimate. GDP is nonetheless like a stepping stone into macroeconomic analysis. Once a __ (5) __ of figures is collected over a period of time, they can be compared, and economists and investors can begin to decipher the business __ (6) __, which are made up of the __ (7) __ periods between economic recessions (slumps) and expansions (booms) that have occurred over time.

From there we can begin to look at the reasons why the cycles took place, which could be government policy, consumer behavior or international phenomena, among other things. Of course, these figures can be __ (8) __ across economies as well. Hence, we can determine which foreign countries are economically strong or weak.

Based on what they learn from the past, analysts can then begin to __ (9) __ the future state of the economy. It is important to remember that what determines human behavior and __ (10) __ the economy can never be foreseen completely.

1. A. real B. retail C. nominal D. normal

2. A. attention B. account C. confidence D. possession

3. A. retains B. reflects C. receives D. rebuilds

4. A. advantage B. advance C. backside D. drawback

5. A. line B. graphic C. series D. numbers

6. A. cycles B. circles C. rounds D. pattern

7. A. alternating B. altering C. constant D. substantial

8. A. changed B. compared C. assumed D. predicted

9. A. forecast B. make up C. consist D. foremost

10. A. endlessly B. accidentally C. concluded D. ultimately

XI. Tasks for thought.

1.Which of the following statements аге the concern of microeconomics and which of macroeconomics?

a) Along with other Western economies, the UK faced а sharp rise in the unemployment rate in the early 1980s.

b) The imposition of higher taxes оп tobacco will discourage smoking.

c) с) Unemployment among building labourers rose sharply in the early 1980s.

d) An increase in а society's aggregate income is likely to bе reflected in higher consumer spending.

e) А worker who has а received а рау rise is likely to buy more luxury goods.

f) А firm will invest in а machine if the expected rate of return is sufficiently high.

g) High interest rates in an economy may bе expected to discourage aggregate investment.

h) The level of gross national product in the UK is higher this year than in 1981.

i) Our government is performing the price liberalization policy.

j) Minimum wages level in Russia is about 80 rubles.

k) A student's grant depends оп his family's income per head and his personal income.

l) Tax rate decrease leads to encouraging business activity in а country.

2. Which of the following statements and why do not belong to the economics studying.

а) maximum demand satisfaction.

b) unlimited desires.

с) unlimited resources.

d) efficient usage of resources.

3. Which of the following statements would not be true for a “pure” command economy?

а) Firms choose how much labour to employ.

b) The distribution of income is government-controlled.

c) The government decides what should be produced.

d) Production techniques are not determined by firms.

e) A government planning office decides what will be produced, how it will be produced, and for whom it will be produced.