Task 1. Read the text and translate it into Russian. Explain how the economy machine works.

The economy of the country is like a machine which provides us with things we need, i.e. goods and services. The economy creates the wealth of the country. The better it works the better off are the people.

The government through its economic policy plays an important role in the control of the economy machine. The major branches of economic policy are fiscal and monetary policies. Fiscal policy is concerned with taxes and government spending activities. Monetary policy is concerned with controlling the supply of money and credit.

A nation’s economy can be divided into three sectors of activity. The primary sector deals with extraction of minerals, agriculture, fishing and forestry. Processing of the primary sector materials and production of manufactured goods is the field of the manufacturing sector. The service sector provides services of various kinds such as transportation, distribution, catering as well as financial services and tourism. The role of the manufacturing sector in the advanced industrialized countries is decreasing while the service sector is becoming more important.

Words and word combinations you may need

branch – отрасль экономики

fiscal policy – бюджетно-налоговая политика

monetary policy – кредитно-денежная политика

supply – предложение

supply of money and credit – денежная масса в обращении и предложение

кредитных средств

primary sector – первичный сектор

deal with – иметь дело с

extraction – добыча (минерального сырья)

processing – переработка

manufacturing sector – обрабатывающий сектор

distribution – распределение, дистрибуция

catering – общественное питание

advanced industrialized countries – промышленно-развитые страны

Task 2. Think of adjectives which are frequently used with the following words:

enterprise, sector of economy, programme, finances, business, policy

Task 3. Form the verbs from the following words and translate them into Russian

employment, government, privatization, decision, growth, manufacturing

investment, tax, extraction, production, transportation, distribution, supply

Task 4. Match the infinitives in A with nouns in B.

A B

to produce an enterprise

to privatize a climate

to play raw materials

to take assistance

to create productivity

to provide goods

to raise a decision

to process a role

Task 5. Read the interview with a Russian economist published in one of the specialist journals. Sum up his assessment of the economic situation in Russia.

Interview with the Economist

Foreigner: How did your economy fare last year?

Russian: Last year was one of the best for Russia. GDP grew at a reasonable pace, then we harvested a record crop.

F.:I think it was due to very favourable weather conditions. What factors resulted in it in your opinion?

R.:Undoubtedly, the weather conditions affected the crop. But I think that investment and reforms in agriculture started to pay back.

F.: And how do you assess the manufacturing sector, your industry?

R.:Industrial production went up in some branches, though the real sector still needs more investment if we want it to develop faster.

F.:If you want foreigners to invest you must give them guarantees of law and order in the country, create a more favourable business climate.

R.: I can’t agree more. Last year a lot of laws were passed to this effect. Suffice it to mention our tax system, it was simplified.

F.:I see. Considerable progress was made in your country last year. Besides, as far as I know the living standards improved.

R.: Yes, pensions were increased, salaries of state employees were raised too. Demand for consumer goods increased.

Note on the dialogue

How did your economy fare last year? – Как обстояли дела в вашей экономике в прошлом году?

harvest – собирать урожай

record crop – рекордный урожай

due to – благодаря

result in – привести к

affect – оказывать воздействие

pay back – окупаться

real sector – реальный сектор, промышленность

law and order – закон и порядок

pass – принимать (законопроект)

to this effect – в этих целях

suffice it to mention – достаточно упомянуть

simplify – упрощать

demand – спрос

consumer goods – потребительские товары

Say/ write how you assess the economic situation in our country.

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