Ex. 1 Translate the sentences and state the tense-form of the predicate

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Unit I What is Economics about?

Grammar: Tenses in Active Voice. Functions of “to be” and “to have”.

Word building: un-, in-, dis-, non-.

Text: Economics is a Science.

Business practice: Writing Business Letter.

Interesting facts: Flags and Emblems of Great Britain.

Ex. 1 Translate the sentences and state the tense-form of the predicate.

  1. Inflation erodes our real wages.

  2. Consumers pay for some extra services, such as medicine, education, transport.

  3. This big company provides fuel for many plants and factories in this area.

  4. For nearly 300 years Americans used sophisticated technology to exploit natural resources.

  5. In the 30 years before the Revolution Russia’s economy grew at between 5-6% annually.

  6. The cold war threatened the very survival of the human species.

  7. The demand for the product will vary with time.

  8. The development of management skills will not come about solely by reading books or attending courses.

  9. Next year the factory will introduce new technology.

  10. In Britain tourism is now supporting about 1.4 million jobs.

  11. The use of computers as a management tool is steadily increasing.

  12. Indeed, the gap between the rich and the poor is progressing more rapidly than at any time in recent history.

  13. The organization structure in today’s factory is still undergoing change.

  14. By 1990s more than 20 million low-income people were receiving food stamps each month.

  15. The Declaration of Independence recognized the great changes that were taking place in the colonies.

  16. The Finance Manager was speaking on the telephone with the accountant.

  17. The company expects that by 2010 about $4 billion will be coming from completely new areas of business.

  18. The engineer will be teaching workers to work with the new equipment at 10 tomorrow.

  19. People’s life in developing countries has changed little over the centuries.

  20. We have made big progress in the education sector in the last two years.

  21. Natural real output in the United States has grown steadily throughout this century.

  22. Over the past twenty or thirty years the banking systems of most developed countries have changed considerably in several directions.

  23. During these years they have worked toward this goal.

  24. News had traveled about the world long before newspaper appeared.

  25. By 1940 the number of factory workers had almost doubled.

  26. The loss from the last operations was twice as high as the company had predicted.

  27. By the time she next month, she will have been with the firm for 22 years.

  28. For several weeks the media has been reporting on the decline of the dollar.

  29. For many years scientists had been studying the nucleus before they found that it is possible to split it.

  30. By the 1st of September this year he will have been working at this company for 3 years.

Ex. 2 Translate the sentences minding functions of the verb to be.

  1. We were to meet and discuss it on Friday.

  2. He is to make a report at the conference.

  3. You’ll have to call again. The director is away on business.

  4. She is a student at this college.

  5. My friends were in London at that time.

  6. Who were you talking to when I came in?

  7. Economic conditions are changing all the time.

  8. You are to read this paper before the conference.

  9. They are starting a new sales campaign next week.

  10. I have just seen him. He must be somewhere about.

  11. I have to go out now, but I’ll be back soon.

  12. There were fluctuations in the prices but on the whole they are down.

  13. The market is to decide how much to produce.

  14. Prices are to regulate production and consumption in a market economy.

  15. I am a third-year student.

  16. Company managers are to calculate future costs and profit before starting the production of a new commodity.

  17. Our company is about to make a contract of delivery of new equipment.

  18. The agreement between two companies is under consideration now.

  19. You’ll have to call again. The director is away on business.

  20. Many people are out of work after economic crisis.

  21. The Marketing Manager is responsible for market research.

Ex. 3 Translate the sentences minding functions of the verb to have.

  1. When he spoke to me, I realized that I had seen him before.

  2. As goods and services are scarce they have to be produced.

  3. In many countries economic development has led to periods of rapid population growth.

  4. She has worked as a Personal Manager for ten years.

  5. A lot of African countries have to develop the export of natural resources if they want to increase their national income.

  6. I will have finished all this typing by 6 p.m.

  7. In the absence of some form of money, exchange has to take the form of barter.

  8. A free market economy has no government intervention.

  9. Price increase can have a vital impact on your business.

  10. We don’t have business talks at evenings.

  11. The secretary has lunch at 11.

  12. Each company has samples of its products in stock.

Ex. 4 Put the verbs in brackets into proper form:

  1. In industrialized countries, the service sector (to grow) very fast nowadays..

  2. Not only goods but also services (to be) important for consumers.

  3. When he (to graduate) from the University, he will become a good specialist.

  4. If you (to prepare) the report in time, you will take part in the conference.

  5. Some African countries (to reach) success in some industries recently.

  6. The factory (to employ) new workers now.

  7. He ( to look through) the documents by 5 o’clock tomorrow.

  8. We (to begin) an additional course in computer programming in a month.

  9. You (to like) Professor Smith’s lectures on economics, I am sure.

  10. The price for oil (to change) in accordance with the demand and supply in the world market.

  11. With the development of the system of all cell phones in Russia the price for this service (to decrease) during two last years.

  12. The degree of economic interdependence between different countries in the world (to increase) last year.

Ex. 5 What do you know about economics?

Do you think economics is a science? Explain why.

Read Text A. Underline the international words and give their translation.

Words to Text A:

economy, n хозяйство, экономика

e.g. a capitalist economy

economics, n экономика, экономическая


e.g. He’s got a degree in Economics.

business, n 1) дело, занятие

e.g. We do a lot of business with Italian companies.

2) предприятие

e.g. A business owned and run by one or more members of the same family

3) коммерческая


e.g. We are in business to create profit.

profit, n выгода, прибыль

e.g. They sold the business and bought a yacht with a profit.

profit from, v получать прибыль от

e.g. Coca-Cola profited from higher sales overseas.

bankruptcy, n банкротство

e.g. There has been a sharp increase in bankruptcies in the last two years.

go bankrupt, v обанкротиться

e.g. Many people would lose their jobs if the firm were to go bankrupt.

earn, v зарабатывать

e.g. He earns nearly £20.000 a year.

income, n доход, заработок

e.g. The family income didn’t rise last year.

affect, v воздействовать,

влиять (на кого-л.)

e.g. The last crisis affected our business.

determine, v определять

e.g. Our income is used to determine our standard of living.

employ, v предоставлять работу,


e.g. The company employs 2000 people worldwide.

employment, n служба, работа, занятие

e.g. Students seek employment after college.

employer, n наниматель, работодатель

e.g. Every employer should spend money on training.

employee, n служащий; работающий

по найму

e.g. A large proportion of the company’s employees work outside the UK.

tax, n налог

e.g. President said he would cut taxes for middle-income America.

impose, v облагать (налогом),


e.g. We have decided to impose on countries that break the agreement.

levy, v налагать налог

e.g. A new tax has just been levied on all electrical goods.

purchase, n покупка

e.g. Do you wish us to deliver your purchases?

purchase, v покупать

e.g. money to purchase a new car

arrange, v устраивать,


e.g. The negotiations was arranged at high level.

with reference to ссылаясь на

e.g. With reference to your recent advertisement, I am writing to request further details.

be related to, v быть связанным, состоять

в родстве

e.g. The drop in sales was related to the end of a tax break on new cars.

deal with, v иметь дело (с кем-л.)

e.g. Who’s dealing with this account?

share, n 1) доля, часть

e.g. a share in the profits

2) акция

e.g. Friendly companies and banks own 56% of all shares in Germany’s companies.

shareholder, n акционер, пайщик

e.g. Dividends are paid to the shareholders each year.

share, v делить, распределять


rely on, v полагаться на

e.g. I think we can rely on him.

diminish, v уменьшать, убавлять

e.g. The party’s share of the electorate has diminished steadily.

diminishing returns убывающая доходность

subject, n тема, вопрос, проблема

e.g. Paul has strong opinions on most subjects.

reason, v рассуждать

e.g. the ability to reason

Notes to text:

advocate, v - отстаивать, поддерживать

adhere to, v - придерживаться (чего-л.)

Text A

Economics is a Science

Every day it becomes more apparent that economics plays a major role in our lives. Our decisions on what profession to enter, where to work, and where to live are based in large part on economic considerations. If we own a business, economic factors dictate whether or not we earn a profit and continue to operate or fail and go into bankruptcy. Economics applies directly to the earning of our incomes and to the spending of our money. Aside from the direct application of economics to our lives, we are also affected indirectly. Economic policies help determine the level of produc­tion and employment in our nation, the amount of taxes we pay, how much aid we give to developing nations, and how much of our resources we devote to preserving our natural environment. Economic measures influence the prices we pay, the purchasing power of our money, the availability of goods and services, and our standard of living.

We must keep in mind the fact that a science is an organized body of truth coordinated, arranged, and systematized with reference to general laws or principles. Frequently when a person thinks of science, one thinks of the physical sciences, such as physics, chemistry, and biology.

There are also, however, nonphysical sciences, which include philosophy, mathe­matics, psychology, politics, and economics. Economics is considered to be a science because it is an organized body of truth coordinated, arranged, and systematized with reference to certain general laws and principles.

As a science, economics is related to other sciences. Since some of its laws, such as the law of diminishing returns, are based on physical phenomena, economics is related to physics. Since it operates within a nation, it is related to the political structure of that nation and, therefore, to political science. Income determines the standard of living. A low standard leads to social problems. Thus, economics is related to sociology. Since it deals with human behavior, it shares this phase of its study with psychology. For example, the reasons why individuals spend or save are psychological as well as economical. Economics is also related to philosophy. Economic acts are human acts, and human acts constitute a proper subject for ethics, a branch of philosophy. Occasionally someone advocates an economic doctrine that is in contradiction to a moral principle. In such a case, the moral principle should take priority over the economic principle.

Economics, especially at the advanced level, is closely related to mathematics. Economic theory and analysis today not only rely on the use of statistics, econometrics, calculus, linear programming, and other math­ematical tools, but much progress has also been made through computer application to economic problems. In its relationships with both physical and nonphysical sciences and exact and non-exact sciences, economics is certainly related to logic, the science of sound thinking, just as any study should be. It is senseless to study any subject without adhering to the rules of logic, whether reasoning from a particular instance to a general principle or from a general principle to a particular application.

Ex. 6 Arrange the following words in pairs of synonyms:

Apply, comprise, appeal, affect, act, influence, include, profit, near, trust, carry out, quantity, rely on, amount, close, return.

Ex. 7 Arrange the following words in pairs of antonyms:

High, appear, spend, impossible, increase, low, irregular, success, decrease, failure, disappear, regular, earn, possible.

Префиксы с отрицательным значением un-, in-, dis-, non- выражают противоположное значение. Happy - unhappy

Important - unimportant

Official - unofficial

Complete - incomplete

To appear - to disappear

Legal - illegal*

*перед l префикс in- превращается в il-, перед r - в ir-, а перед m и p - в im-: regular –irregular, possible- impossible.

Ex. 8 Make new words with negative meaning from the given ones:

Expected, equal, known, limited, pleasant, to lock, ability, capable, direct, mobile, patient, logical, to like, honest, order, to organize, to join, to connect, essential.

Ex. 9 Word building: fill up the table and give their translation.





















Ex. 10 Read and translate the words and word combinations in writing. Use a dictionary

if necessary.

To refer

To refer to as

To be referred



Reference dates of business cycle

To rely on

To be relied on

Reliable source

Reliance on funds

Reliability of economic forecasting

To arrange


To be arranged

Arrangement of negotiations


Arrange for payment

To purchase


To be purchased




Purchasing power

Purchase on credit

To apply


Applying for a job



Application letter



To employ

Employed on agreement basis





Employment of capital

Ex. 11 Find English equivalents in Text A.

1. социальные проблемы

2. покупательная способность денег

3. уровень жизни

4. обанкротиться

5. основанный на физических явлениях

6. охрана окружающей среды

7. уровень производства и занятости

8. придерживаться доктрины

9. убывающие доходы

10. наличие товаров и услуг

11. поскольку

12. поэтому, вследствие этого

13. являться предметом

14. логичное мышление

15. выбрать профессию

16. таким образом

17. применять непосредственно

18. системно организованные знания

19. кроме

20. помнить

21. однако, тем не менее

Ex. 12 Read and translate the following word combinations. Use them in the sentences of

your own.

    1. subject for discussion

    2. oil and gas business

    3. earn a profit

    4. net profit

    5. annual income

    6. business approach

    7. go into bankruptcy

    8. own a business

    9. run a business

    10. economic considerations

    11. earning of incomes

Ex. 13 Match parts A and B.


  1. Means of supplying a want. 1. to earn

2. Practical science of the production and .

distribution of wealth. 2. standard of living

3. Annual estimate of revenue and expenditure. 3. budget

  1. To obtain as reward of labor. 4. economics

  2. Minimal of material comfort with which

a person or class may reasonably be content. 5. resource

Ex. 14 Say if it is true or false. Correct false statements, using the following phrases:

I think, that’s why, it’s not correct, to my mind etc.

  1. As a science economics is related to other sciences.

  2. Economics theory and analysis today rely only on the use of statistics.

  3. Each science is an organized, arranged and systematized body with reference to general laws or principles.

  4. Income determines the political structure of the nation.

  5. Standard of living helps determine the level of production and employment in our nation.

Ex. 15 Fill in the gaps with prepositions where necessary:

Through, without, to (4), in (2), of (4), at, with,

  1. Every day it becomes more apparent that economics plays a major role … our lives.

  2. Economic measures influence … the prices we pay, the purchasing power … our money, the availability … goods and services, and our standard … living.

  3. We must keep … mind … the fact that a science is an organized body … truth coordinated, arranged, and systematized … reference … general laws or principles.

  4. As a science, economics is related … other sciences.

  5. Economics, especially … the advanced level, is closely related … mathematics.

  6. It is senseless to study any subject … adhering … the rules of logic.

  7. Much progress has been made … computer application to economic problems.

Ex. 16 Give answers to the following questions according to Text A.

1. What role does economics play in our every day life?

2. Why can we say that economics is a science?

3. What other sciences is economics related to?

4. In what way is economics closely related to mathematics

Ex. 17 1) Read Text B and fill in the gaps with the given words in the correct form.

(in relation to, analyze (2), economics, principles, standard of living, relationship )

Text B

Economy — Only a Part of Society

Frequently when we study __________ , we mentally extract the econ­omic system from its total environment and analyze it in isolation. We find out how it works, what its functions are, and how it can serve us. We study the individual parts, relate them to one another, integrate them, and __________ the economy as a whole. After we have done this, we should put the economy back into its original place in society and study its ____________ to the rest of society. We frequently neglect to do this, however, or we ignore or de-emphasize the other aspects of our society.

Although we may __________ the economy as an isolated unit, we must keep in mind that it is a part of a larger unit, society. Consequently, after we have obtained our facts, established our __________, and drawn our conclusions, we must fit economics into its proper sphere and reevaluate our conclusions ______________ the cultural, social, political, and moral aspects of society. If we do not do this, we can be misled very easily. For example, economics may stress the improvement of our __________________ as a prime objective. To obtain such an economic objective at the expense of our political or moral welfare, however, could be highly dangerous.

2) Translate Text B into Russian in writing. Use a dictionary if necessary.

Ex. 18 Read Text C and answer the questions below.

Notes to text:

Utility - полезность

Allocation - распределение

Reimburse - возмещать, компенсировать

Ultimate - основной

Scarce - зд. дефицитный

Transferable - переводный

Sound economic reasoning - разумное экономическое объяснение

Prudential judgments - благоразумная оценка

Aggregates - совокупные величины

Text C

Economics is a science that is concerned with the production, distribution, and consump­tion of goods and services. It is a science because it is an organized body of truth co­ordinated, arranged, and systematized with reference to certain general laws and prin­ciples.

Production is a process that brings about the creation or addition of utility. Several types of utility exist, including form, place, time, and possession utility.

Distribution as used in economics generally refers to the allocation of the total product or income among the factors of production. The factors of production are labor, land, capital, and entrepreneurship. They are reimbursed in the form of wages, rent, interest, and profits, respectively, for their contribution toward the total product. Several theories exist that seek to explain distribution.

Consumption is the utilization of a good or a service. It is the ultimate end of all economic activity. Wealth is our total collection of eco­nomic goods. An economic good is one that is material, useful, scarce, and transferable. Any activity that is useful, scarce, transferable, but not material is an economic service.

Goods can be classified as economic goods, free goods, and public goods. Economic goods may be divided into two groups, consumer goods and capital goods. Income is equivalent to the total goods and services produced over a given period.

Economics is related to other sciences, such as physics, psychology, sociology, political

science, and philosophy. Logic, a branch of philosophy, is essential for the development of sound economic reasoning. Prudential judg­ments frequently enter into the determination of economic goals and principles as well.

There is a distinction between economic theory and economic policy. The first deals with the rules and principles to be used under a given set of economic conditions. The latter deals with what we actually do under such conditions. Differences between the two fre­quently occur, since economic policy is often modified by political, social, and military policy. Economic problems and issues often can be presented in the form of a decision tree showing alternatives and choices. After proper analysis a prudential judgment can be made regarding alternative solutions.

The study of economics is divided into two broad areas: microeconomics, dealing with the actions of the individual, the firm, and the industry; and macroeconomics, dealing with aggregates, such as total production, employ­ment, and income.

    1. What is the relationship between economic theory and economic policy?

    2. Explain why there are frequently different opinions or judgments among economists on matters of economic policy.

Ex. 19 1) Find in Text C:

      1. Definitions of economic terms;

      2. Classifications;

      3. An example of contrast;

      4. What methods are used in economics studies.

2) Underline the topical sentences in each paragraph of Text C. Make up a

summary of Text C.

Ex. 20 Render Text D into English.

Text D

Экономика – специфическая сфера человеческой деятельности.

С момента возникновения общества человек стремился как можно полнее удовлетворить свои потребности. Для этого человечество вырабатывает специальные методы. На определенном этапе истории сформировался важный элемент человеческой цивилизации – экономика, которая является совокупностью форм и методов, создающих условия для выживания и прогресса человечества.

Экономика – это все виды деятельности людей, которые создают им материальные условия для жизни. Создав экономику, человечество сделало качественный шаг в своем развитии.

Экономика создает каркас цивилизации, поскольку она держит на себе все другие институты. Экономическая наука постоянно расширяет свое поле действий, проникая в другие области, в особенности – в социальные, гуманитарные науки. Наряду со своим традиционным объектом (производство, обращение, потребление товаров) экономические знания глубоко пронизывают всю социальную сферу, приложимы практически ко всем видам отношений – в семье, социальных группах, производственных коллективах, в обществе. Экономика тесно взаимодействует с философией, социологией, психологией, правом, историей, географией, информатикой, математикой, с рядом естественных наук.

Ex. 21 1) Read and translate the following example of business letter:

Names of parts of the letter:

(1) Heading, sender’s


(2) Date (but could be after

receiver’s address)

(3) Receiver’s name &


(4) For a formal letter it is a

good idea to put the topic

of the letter as a heading

(5) Start (when you know

the name of the reader:

Dear Mr./Mrs., when you

don’t know the name of

the reader: Dear Sir/Madam

(6) Body of letter

(7) End (when you know the

name of the reader:

Yours sincerely, when

you don’t know the name

of the reader:

Yours faithfully

(8) Signature

(9) Name & title of sender

(10) enclosure

Lux del Sol, Ltd.

11 Caballero de Gracia

0803 Barcelona, Spain

Tel: 34 35 97 97

Fax: 34 3 596

27 July 2008

Antony Benson

Sales Manager

Alabama Computers, Inc

27 Gate Road.

Mobile 17G Alabama


Request for a sample

Dear Mr. Benson,

Thank you very much for the catalogue you send us. The information it contained was quite interesting for us.

Before making a decision of placing an order for a quantity we would be grateful if you could arrange for a sample to be sent to us as soon as possible. Please state what discount you allow for quantities.

Yours sincerely

Marcel Rodriguez

Marcel Rodriguez


encl.: technical requirements

2) Put the parts of letter in the proper order:

  1. encl.: contract

  2. Mrs. Jing Peng

36 Hersham Rd




  1. Yours sincerely

  2. Karen Gilbert

  3. We are pleased to inform you that you have been successful in your application

For the position of secretary to the managing director at Tilly’s Trinkets.

Please sign and return a copy of the contract enclosed to confirm acceptance of this

Offer. We look forward to hearing from you soon.

  1. Karen Gilbert

HR Manager

  1. Re: job application

  2. Dear Mrs. Peng

  3. 3 May 2008

(10) 007 S. Los Angeles Street

Los Angeles, Ca.00007


Do you know?

1. Say what Emblems of Great Britain you know.

2. Now read the text and say what new information you have learned.

The United Kingdom of Great Britain and Northern Ireland ( the UK ) occupies most of the territory of the British Isles. It consists of four main parts which are: England, Scotland, Wales and Northern Ireland.

The flag of the United Kingdom, known as the Union Jack, is made up of three crosses. The upright red cross is the cross of St. George, the patron saint of England. The white diagonal cross is the cross of St. Andrew, the patron saint of Scotland. The red diagonal cross is the cross of St. Patrick, the patron saint of Ireland.

Each country also has a national “emblem” or sign. The English emblem is a red rose. The Welsh emblem is a vegetable or a flower – a leek (лук порей) or a daffodil (нарцисс). The Scottish emblem is a wild plant – a thistle (чертополох). And the Irish emblem is another wild plant – a shamrock (камнеломка).

It’s traditional in Britain to wear your country’s emblem on its saint’s day. These are Britain’s patron saints and their days.

England – St George – April 23rd.

Ireland – St Patrick – March 17th.

Scotland – St Andrew – November 30th.

Wales – St David – March 1st.

The Scots, Welsh and English don’t really celebrate their national saint’s days. But St Patrick’s Day is important for Irish people all over the world. In New York, for example, the Irish people always have a big St Patrick’s Day parade.

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