Recovery, peak, trough, economic growth, GDP, business cycle, recession

1) Recurrent rises and falls in real GDP over a period of years is called the ___________.

2) A ________ is officially defined as two consecutive quarters of real GDP decline.

3) _________ is the increase of per capita GDP: it is measured by the annual percentage change in real GDP in a nation.

4) _________ of a country is defined as the total market value of all final goods and services produced within a country in a given period of time.

5) The phase of the business cycle during which real GDP reaches its maximum after rising during a recovery is called a ________.

6) A _______ is a phase of the business cycle during which real GDP reaches its minimum after falling during a recession.

7) An upturn in the business cycle during which real GDP rises is called a ________.

3. Complete the statements choosing the right option.

1) The _______ phase of the business cycle follows a recession.

a. recovery

b. contraction

c. peak

d. trough

2) The upper turning point of a business cycle is a _________.

a. boom

b. trough

c. peak

d. expansion

3) A recession is a business contraction lasting at least________.

a. one years

b. six months

c. three months

d. one month

4) A serious, long-lasting recession is called a ________.

a. boom

b. depression

c. growth

d. contraction

5) Technological advances, natural disasters, elections are _______ factors causing the business cycle.

a. internal

b. endogenous

c. exogenous

d. demographic

4. Answer the questions on the text.

1) What is the business cycle?

2) What phases of the business cycle are generally identified?

3) What economic indicators are taken into account when estimating the phase of the business cycle?

4) What theories of the business cycle does the text review?

5) How do internal theories view the business cycle?

6) What factors are considered important in external theories?

7) Which of the various theories of the business cycle mentioned in the text do you find the most convincing?

DEVELOPING VOCABULARY

1. Read the following words; mind the stress: a) on the first syllable; b) on the second syllable; c) on two syllables; give their Russian equivalents.

a) concept, item, scarcity, scarce, vital, realize, increase n;

b) economy, ingredient, resource, society, deprived, assemble, compete, concern, distribute, increase v;

c) connotation, economics

2. Using a dictionary add as many derivatives as possible into the table.

Verbs	Adjectives	Nouns
1.		definition
2.		economics
3.	scarce
4.		society
5.apply
6.		use
7. compete
8. distribute
9.	vital
10. choose

3. Give adjectives corresponding to followings nouns.

concept, resource, wealth, use, inflation

4. Derive nouns from the following verbs.

select, develop, assemble, concern, evaluate, increase, realize, produce, distribute, employ

5. Match the words with the definitions below.

Concept, goods, scarcity, society, wealth, welfare, to compete, to distribute, to evaluate.

1) Movable property; merchandise.

2) Idea underlying a class of things; general notion.

3) To take part in a race, contest, examination.

4) To put (parts of a set of things) in different places; give or send out.

5) To find out, decide, the amount or value of.

6) Smallness of supply compared with demand.

7) System whereby people live together in organized communities.

8) Condition of having good health, comfortable living and working conditions, etc.

9) Great amount of property, money, etc.; richness.

6. Choose the words with similar meanings from the two groups and arrange them in pairs.

A. concept, connotation, definition, goods, ingredient, item, resources, scarcity, use, wealth, vital.

B. articles, conception, association, determination, supplies, component, point, shortage, richness, application, life.

7. What are the opposites? Example: fast — slow

prosperous, poverty, capable, wealth, excess, plentiful, to distribute, to decrease, flexibility.

8. Complete the sentences with the words below.

Precise, limited resources, scarcity, wealth, total output, society, to distribute, means, the concept, vast.

1) Economics is a theory of how... works.

2) We have … … in rich and poor countries.

3) The guiding idea in economics is....

4) One of the primary concerns of economics is to increase the... of a society.

5) Once we have produced goods and services we have to decide how...... them.

6) By wealth the economist... all the real physical assets.

7) … …of welfare is concerned with the whole state of well-being.

8). Economics is a … subject and …definitions are very complex.

9). The problem concerns the composition of ….

9. Form all possible word combinations using the words of both columns and translate them into Russian.

deprived scarce vital limited distribute be concerned with concept of economic increase evaluate assemble

resources goods people ingredients choice welfare society wealth definition stock use

10.Translate into English.

1) Существует много отраслей и конкурирующих научных школ по экономике.

2) Экономика занимается изучением того, как работает общество.

3) Нехватка является одной из основных идей экономики.

4) В мире не хватает ресурсов, чтобы дать людям все, что они желают.

5) Обездоленными зачастую чувствуют себя не только бедные, но и достаточно обеспеченные граждане.

6) Экономисты оценивают, как наилучшим образом использовать имеющиеся ресурсы.

7) Экономика заботится о том, чтобы увеличить богатство общества.

8) Экономика изучает материальную сторону жизни общества.

9). На планете существуют общества, которые испытывают крайнюю бедность.

11. Make up your own sentences using the following words and word combinations.

underlying problem, economics, comprehensive theory, society, the guiding idea, scarcity, not enough resources, to want more, to fill everyone's wants.

DISCOVERING LANGUAGE

1. Complete the sentences. Put the verbs into the correct form:

1) Most things we want … …free in nature. ( not/ be )

2) She... a lot of different jobs in the firm. ( do )

3) At the moment the director... the problem and the secretary... the telephone. ( discuss, answer )

4) As our knowledge... we... more and more opportunities. ( grow, exploit )

5) The growth of civilization... largely the development of new wants. ( be )

6) They... at five o'clock most days but they... late today. ( finish, work )

7) Professional corporations... more common now. ( become )

8) We... a meeting next week. ( plan )

2. Complete the sentences using one of the given verbs and verbal phrases in the P resent Simple or the Present Continuous; mind the use of the Active or Passive voice.

a) be, have, appear, mean, do, be going to have, be

1) Economics... the first art which man acquired.

2) We... limited resources both in rich countries and poor countries.

3) By wealth the economist... all the real assets which make up our standard of living.

4)... there any justification for protecting certain industries from foreign competition?

5) More and more economists... on the payrolls of large corporations now.

6) They... the skills they need to teach economists.

7) What … economists...?

b) involve, be going to take, go, mean, change, attempt, should/look, use

8) It is the directors who determine the direction the business....

9) It... planning to ensure that the business first survives and then flourishes.

10) What it... to be a manager?

11) Every business has to decide where it....

12) Speculators... always to the future and... to anticipate events.

13) Technological innovations and increased competition... the face of British banking now.

14)Banks and other financial institutions... computer technology now.

3. Fill in the gaps with the prepositions.

1) Graduate schools are principally interested... what they call " theoretical" research.

2) Economic education is not succeeding, because the content... what is being taught is flawed.

3) The tasks of dealing with real-world data, gaining access... existing knowledge are not taught.

4) What is currently taught is connected... criteria for advancement and promotion.

5) Material resources of the world are limited and our ability to make use... these resources is even more limited... our ignorance.

6) The price you pay consists... all the other alternatives you have thereby given up.

7) This fact has nothing to do... any particular form of economic and social organization.

8) Most introductory textbooks … Economics begin … posing the question, “What is Economics…? ”

9) Goods can be produced … a variety … methods.

10) Any definition should take account … the guiding idea … economics which is scarcity.

4. Use the words in the brackets in the corresponding forms.

1) They ( should/ not ) tell the manager about their difficulties.

2) We ( have ) with a lot of difficulties last year.

3) The company ( have ) reduce prices for its goods if the demand falls.

4) The economist ( be ) finish the analysis before the manager makes a decision.

5) The seller ( be ) deliver as soon as the buyer paid for them.

6) He ( ought ) follow their advice?

7) The firm ( have ) buy new equipment or it can use old machines?

8) He ( have/ not ) pay any tax last year.

5. Insert must, should, have to, be to to complete the sentences.

1) The building firm … finish the construction of the new plant this year.

2) There are no parking facilities for manufactured cars, so the company … buy some land.

3) The workers … produce the first 100 cars by the end of the year.

4) African countries … buy a large part of machinery and equipment for their plants from developed countries.

5) The engineers … follow the instructions how to use new equipment.

6) Last year the local government … (not) spend much on transport facilities as they were well maintained.

7) Companies trading in the world market … ensure high standards.

8) When most countries of Central Europe exhausted there coal resources they … import large quantities gas and oil from abroad.

9) The government … spend more money to involve more children in sports.

10) Such large countries as the USA and Canada … (not) import wheat because they produce this crop on large areas in there countries.

6. Translate the words in the brackets into the modal verbs.

1) Today they ( должны будут ) prepare the document for tomorrow’s meeting.

2) In the late 1940s, the Japanese government ( могло ) maintain only a very low level of living for the most part of population. However, the country ( смогла ) develop its industry by introduction of new technologies.

3) The country did not harvest enough crops last year, so it ( была вынуждена ) import additional foodstuffs.

4) Some small European industrialized countries ( могут ) provide large credits for the developing countries.

5) Some economists think that such rapidly developing Asian countries as China and Taiwan ( смогут ) overtake the USA in high-tech in future.

6) Nowadays some goods manufactured in developing countries ( могут ) compete successfully in the world market.

7) The scientists ( следует ) study better how people’s activities influence the earth’s climate and ecology.

8) Belgium ( вынуждена была ) specialize only in some manufactured goods, for example, in cars.

9) Early in the 20th century, developing countries ( не могли ) as there were strong trade barriers.

10) A small nation ( не должна ) produce all manufactured goods as it (может) import them at a lower price from other countries.

LISTENING

1. Listen to the lecture about different types of economies. Choose the appropriate endings of the sentences.

1) Markets are arrangements through which prices influence how we allocate …

a) resources

b) goods

c) services

2) Let’s have a quick look at a 3 kinds of….

a) economics

b) society

c) economy

3) This kind of economy is a society where the government …

a) solves problems

b) takes all the decisions

c) sets the goals

4) The government decides production and …

a) distribution

b) consumption

c) allocation

5) The state owns factories, and it also owns …

a) buildings

b) equipment

c) lands

6) In a free market individual people, as yourselves, are free pursue there own ….

a) interests

b) goals

c) targets

7) Let’s say you invent a new kind of …

a) TV set

b) mobile phone

c) car

8) The government controls a share of

a) output

b) stock

c) benefit

9) Most countries are ….

a) mixed economies

b) command economies

c) market economies

2. Listen to the lecture again and complete the following statements with the words the lecturer uses.

1) Markets are … through which prices influence how we … ….

2) Planning of this kind is obviously very difficult and … to do.

3) The state makes the most important decisions about what … should ….

4) Markets in which governments do not intervene are called … …

5) You do it without any … … or invention.

6) Between these two extremes lies the … economy.

7) It does this through … transfer payments and providing … such as police.

8) Others are … to free market economy.

SPEAKING

1. Speak about economics using key words, phrases and the topic sentences.

2. Speak about economics education in the USA and that in our country. Discuss the questions given after the text. Make use of the following cliché s:

What about...?

I think... If you ask me....

Well, I must say... (for strong opinion).

Don't you think...? (very polite).

Yes, but look.... You don't really think...?

3. In groups of two or three discuss the following problems and report back to the class on your major conclusions.

1) A large percentage of the human race still lives in very small self-sufficient peasant communities.

2) The inhabitants of cities are totally incapable to provide for themselves, directly, the means of their survival.

3) In industrialized societies a high standard of living is possible only if the organized cooperation of large numbers of people can be guaranteed.

4) Neither people’s wants nor their ability to produce goods and services are constant.

5) The problems of choice are essentially problems of allocation.

6) To an economist, economic society presents itself as a mechanism for survival – a means whereby people are able to carry out the tasks of production and distribution.

WRITING

1. Write an essay on the following topic: “Whatever the reason the fact is we find ourselves in a situation of scarcity.”

SUPPLEMENTARY READING

Text 1

1. Read the text and share your opinions on the problems of primary and secondary job of economists.

In the United States, academic economists' primary job is teaching economics. The majority of AEA members do so; the majority of the job listings in the Journal of Economics are for teaching jobs, and such jobs pay the salaries of most academic economists. Since most teaching of economics is the teaching of undergraduates, it would follow that one task of graduate schools is to prepare people to do so.

A second important job of economists is to apply economic analysis to the real world. Economists working for government, business, and consulting firms are supposed to do such applied work. Thus, a second task of graduate schools would be to teach people how to do sound applied work.

But preparing people either to teach economics or to do applied economics is not a primary concern to most graduate economics departments today; in most schools, teaching and applied economics are viewed with derision. Graduate schools are principally interested in what they call " theoretical" research. Graduate professors' research interests guide what is taught; the needs of the students and the world outside of academia are frequently forgotten.

Economics education is not succeeding, not because of any problems with methods of teaching, but because the content of what is being taught is flawed. Students are taught how to publish in academic economic journals. The mundane tasks of dealing with real-world data; gaining access to existing knowledge; and critically examining issues, models, and data are not taught. Unless professors acquire, on their own, the skills they need to teach economics, they are not going to have those skills. We believe that the teaching of economics is pulled in two separate directions: one reflects what academic economists actually do their technical research, which in turn reflects what they are taught in graduate school; and the other reflects what most economists believe they should do.

What is currently taught is deeply connected with criteria for advancement and promotion. Almost from the start of an economist's training, the economist is directed toward technique, toward arriving at definite answers even when only fuzzy answers exist, toward becoming expert at modeling and game playing, but not recognizing the limitations of models- a lack of imagination that has dire consequences when the models influence policy-making. Because of this influence, our concern about the teaching of economics must also reflect a broader concern about economics research — what economists do and why they do it.

Thus we believe that the current situation in graduate economics education is perverse and that the perversity affects everything that economists do.

2. Answer to the following questions.

1) What is the primary job of economists in the United States?

2) What is the second important job of economists?

3) What is a primary concern to most graduate economics departments?

4) Why is economics education not succeeding?

5) What are the two separate directions of economics teaching?

Text 2

1. Read the text and translate it into Russian.

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