Exercise 13. Translate the sentences into English using the active vocabulary
| 1. Економіка – це дослідження того, як люди роблять вибори за умов нестачі та як ці вибори впливають на загальний результат діяльності суспільства. | _________________________________________________________ |
| 2. Вивчення економіки допомагає різним економічним одиницям ефективно використовувати наявні ресурси. | ____________________ |
| 3. У багатьох випадках важливі економічні проблеми не можуть вирішуватись за допомогою тільки теорії та моделей. | ____________________ |
| 4. Мікроекономіка та макроеконо-міка – це дві основні галузі економіки | _______________________________________________ |
| 5. Мікро підхід зосереджується на тому, як причинно-наслідкові зв’язки впливають на вибір окремих осіб, підприємств та суспільств. | ________________________________________________________ |
| 6. Макроекономіка вивчає те, як вибір окремих господарських одиниць впливає на рівень цін, загальний обсяг виробництва та рівень безробіття країни. | _________________________________________________________ |
| 7. Розуміння розбіжності між позитивною і нормативною економіками допомагає людям з різним поглядами спілкуватися один з одним. | ____________________ |
| 8. Позитивна економіка не зосереджується на тому, якими будуть результати – поганими чи хорошими, і що нам слід робити. | ____________________ |
| 9. Нормативна економіка робить заяви про те, що повинно бути, та що слід робити людині, організації та країні. | ____________________ |
Exercise 14. Answer the following questions.
1. What is economics? 2. Why is economics considered a social science? 3. What is microeconomics? 4. What does microeconomics focus on? 4. Why does microeconomics not look into a specific individual’s behaviour? 5. Why does microeconomics trace cause-and-effect relationships? 6. What economic issues does microeconomics do with? 7. What is macroeconomics? 8. What economic issues does microeconomics look at? 9. Why does macroeconomics look into the total effect of individual choices? 10. What are two worlds that economists deal with? 11. What do economists use to explain or describe the “world that is”? 12. What is an economic model? 13. Why is it impossible to solve economic issues economic theories and models alone? 14. Why do economists make the positive-normative distinction? 15. What is the difference between a positive economic statement and a normative one? 16. What is positive economics concerned with? 17. Why does positive economics avoid value judgements? 18. Why do economists use positive economics? 19. What does normative economics deal with? 20. What does normative economics include? 21. Why is normative economics used to take decisions as for issues of equity, equality, and fairness? 22. Why can some economic issues never be decided by using facts? 23. What is the relationship between positive and normative economics?
Questions for economic reasoning and discussion
1. Which of the following problems are studied by microeconomics and which are macroeconomic issues?
a. The allocation of a family’s limited budget.
b. How will an increase in the price of cigarettes affect smoking habits?
c. Why was the 1981-1982 recession so severe?
d. Does a high government budget deficit tend to slow the rate of economic growth?
e. Why does Japan’s economy grow faster than the United States’ economy, while Britain’s grows slower?
f. Why does IBM sell more computers than Apple?
g. What caused the rate of inflation to rise rapidly in Ukraine in 2008?
2. Choose the right variant. Only one is possible.
1. What is economics?
a. Economics is the study of money and financial systems.
b. Economics is the study of business.
c. Economics is a behavioral science that studies how people make choices.
d. Economics is a natural science that studies the resources that nature and previous generations have provided.
2. Economics is defined as the social science that studies
a. how a person can get everything he or she wants.
b. the reason money exists.
c. the way to eliminate choices in our decisions.
d. the choices that societies, and the people and institutions that form societies, make in dealing with the issue of scarcity.
3. Which branch of economics studies the decisions of individual consumers and individual firms?
a. macroeconomics
b. positive economics
c. normative economics
d. microeconomics
4. Microeconomics concentrates on
a. looking at the operation of the entire economy.
b. examining the behavior and operation of the individual units or sectors that make up the economy.
c. our government’s monetary policy.
d. the levels of employment and inflation.
5. Macroeconomics focuses on
a. the whole national economy.
b. the behavior of individual firms.
c. the behavior of individual households.
d. markets.
6. Macroeconomics studies
a. the overall effect of individuals’ choices on national and global economies.
b. the individual choices made by individuals.
c. how firms make profitable output decisions.
d. None of the above answers is correct.
7. The study of the total effects that individual, business, and government choices have on the national and global economies is
a. economics.
b. scarcity.
c. microeconomics.
d. macroeconomics.
8. In economics, there are two types of statements. One describes what is; the other describes what ought to be. These statements are
a. macroeconomic and microeconomic.
b. fair and unfair.
c. right and wrong.
d. positive and normative.
9. An objective statement about “what is” is called a(n)
a. Normative statement
b. Positive statement
c. Economic model
d. Economic theory
10. Economic models
a. reflect trade-offs.
b. are based on custom.
c. simplify and therefore do not reflect the full complication of reality.
d. reflect all the real world conditions.
3. Speak on the following:
· Macroeconomics and microeconomics are interrelated branches of economics.
· The importance of making a distinction between positive and normative economics.