UNIT 2

UNIT 2.

TextThe History of Economics

Grammar Revision1.The Perfect Tenses (the Active and the Passive Voice)

2. Prepositional Verbs in the Passive Voice

3. The Emphatic Construction “it is … that (who, which)

4. Application Letter, C.V.

5. American National Symbols

Ex.1.Translate the following international words and word combinations and give their Russian equivalents.

a)publicationphilosophyintervention

economistanalysiscapitalism

communismtraditionpresentation

argumentidea

b)modern disciplineagrarian phaseindustrial interest

monumental doctrineeconomic liberalismpsychological method

Ex.2.Analyze the tense forms and voice forms of the verbs in the following sentences. Translate the sentences into Russian.

  1. Recent economic measures have influenced the purchasing power of our money and our standard of living.
  2. The concept of consumer choice in the electricity industry is little more than 15 years old, but it has completely changed the industry.
  3. Mr. Wittner has never failed in business.
  4. Why has government spending greatly increased since last year?
  5. During the last several months many companies have been saved from bankruptcy.
  6. Women have come into the labor market in large numbers in recent decades because of fundamental changes in the family, technology, ”women’s rights”, and many other factors.
  7. The specialists haven’t suggested ways and means of solving environmental problems of the region yet.
  8. What means of stabilizing the economy have been suggested by the government lately?
  9. Recently the economies of many countries have felt the scarcity of people who both want and can buy goods and services in large amounts.
  10. Since the beginning of the labor movement a working day has been reduced to 8 hours.
  11. In recent years much emphasis has been placed on macroeconomics.
  12. Profit is an income which is left after all necessary costs of operating a business have been paid.
  13. Labor unions have just used a number of measures to prevent unemployment.
  14. Lately there has been a great effort to make economics a more exact science by the use of mathematical techniques.
  15. The federal government spent more money from 1861 to 1865 during the Civil War than it had spent for all purposes from its beginning under George Washington’s first administration up until Abraham Lincoln’s first administration.
  16. By the end of January hundreds of small firms had gone into bankruptcy.
  17. By then experts will have determined the amount of taxes that will be paid by the firm.
  18. For several years the company has been operating successfully and has been earning a high profit.
  19. For many centuries scientists had been studying only microeconomic problems before they began to analyze the problems of the economy as a whole.
  20. By the 1-st of September this year the plant will have been producing this type of equipment for two years already.

Ex.3.Find the verb in the Perfect Tense in each line.

  1. a) Is considering, b)has been considered, c)considered
  2. a) have referred to, b)was being referred to, c) refers to
  3. a) will treat, b) will have treated, c) will be treating
  4. a) is being influenced, b) has been influenced, c)shall be influenced
  5. a) had purchased, b) purchased, c) is purchased
  6. a) brings about, b) have been brought about, c) were brought about
  7. a) will satisfy, b) have satisfied, c) will be satisfied
  8. a) had earned, b) was earning, c)are earned
  9. a) is consumed, b) are consumed, c)will have been consumed
  10. a) will have been defined, b) will be defined, c) will define

Ex.4.Choose the correct form of the verb in each sentence. Translate the sentences.

  1. The theory of distribution (has interested /has been interested) economists for nearly two centuries.
  2. Lately lots of protests (have been made / have made) against compulsory wage and price controls.
  3. Today our national statistics reveal how much of our total production (has allocated/is being allocated) to each of the factors of production.
  4. After we (are establishing/have established) the main principles and (are making/have made) our conclusions we fit economics into its proper sphere.
  5. Although the USA for decades (are/had been) the world leader in production and income, some nations (have been surpassed/have surpassed) their level already.
  6. Productivity (determines/has been determined) our income.
  7. The size of the market (has determined/is determined) by the income and purchasing power of the population.
  8. Last century economists (have dealt/dealt) primarily with microeconomic problems.
  9. The company (will pay/will have paid) all the taxes by the end of the year.
  10. All the taxes (will be paid/will have been paid) at the end of the year.

Ex.5.Translate the following sentences paying attention to prepositional verbs and phraseological units.

  1. The documents have been sent already.
  2. The documents have been sent for already.
  3. Mr. Brown is a brilliant lecturer. I am sure he will be listened to with great attention when he gives his lecture on macroeconomics.
  4. Though the question had been discussed for a long time no decision was arrived at.
  5. The present economic crisis is widely commented on in the newspapers.
  6. The British economic system is spoken of as “capitalism” in economic world.
  7. The law of demand and supply is often referred to in economic theory.
  8. Economic measures to minimize negative effects of the crisis are now being looked for.
  9. The production of innovative equipment for oil and gas industry will be insisted on.
  10. The problem of environmental protection has been dealt with for many years but it hasn’t been solved yet.
  11. Such economic aspects as total production, total employment, and income are paid much attention to by macroeconomists.
  12. The availability of goods and services is influenced by economic measures.
  13. The amount of taxes that we pay is influenced by the level of production in our nation.
  14. Unfortunately high demand for oil and gas was not followed by their high supply.
  15. Oil prices are affectedby oil demand.
  16. The decline in production was followed by the decline of economic growth.
  17. Economic theory is not always followed by economic policy.
  18. The size of the market is also affected by the transportation system of the country.
  19. It has been known for decades that our economy is influenced by energy.
  20. The development of a new taxation system has been worked on for several months already.

Ex.6.Translate the following sentences into Russian. Mind the emphatic construction “it is…that (who, which)”.

  1. It is macroeconomics that treats the problems of the economy as a whole.
  2. It isthe production of material wealth that is the basis of life and development of any society.
  3. It was Marx who first divided capital into constant and variable parts.
  4. It is the environmental protection that has been paid much attention to all over the world lately.
  5. It was OPEC that guaranteed oil market stability at that time.
  6. It is the forces of total demand and total supply which determine the market price.

Words to the text “The History of economics”

1. derive, v. [dI'raIv] / 1) получать, извлекать; 2) происходить
e.g. to derive a formula; to derive a profit
The word “evolution” is derived from Latin.
2. household, n. ['haVshqVld] / домашнеехозяйство
e.g. Household is a group of people who make economic decisions together.
3. emerge, v. [I'mE:G]
emergence, n. [ImE:Gqns]
4. state, n. / возникать, появляться
e.g.Certain financial problems emerged from the crisis.
появление
e.g. the emergence of new democracies
1) состояние, положение
e.g. poor state, financial state, gaseous state of water
2) государство; штат
e.g. Pakistan has been an independent state since 1947.
There are fifty states in the US.
state, v. [steIt] / утверждать, устанавливать, формулировать
e.g. Theproblemwasaccuratelystated.
5. self-interest, n. ["self'Intrqst] / собственнаявыгода, заинтересованность,эгоизм
e.g. The market economy is motivated by self-interest of individuals.
6. private, adj. ['praIvqt] / частный, личный
e.g. private life, private sector of economy
7. property, n. ['prPpqtI] / 1) имущество, собственность
e.g. As the firm went bankrupt its property was confiscated.
2) свойство, качество
e.g. A substance has both physical and chemical properties.
8. compete, v. [kqm'pI:t]
competition, n. ["kPmpq'tISn] / соперничать, конкурировать
e.g. Few companies can compete with Gasprom in gas production.
конкуренция, соперничество
e.g. The development of market economy isn’t possible without competition.
9. seek (sought), v. [sI:k] / 1) искать
e.g. For over 100 years, men have sought gold in this area.
2) стремиться, добиваться
e.g. The government is seeking to slow the growth of inflation.
10. occupation, n. ["Okju'peISqn] / занятие, дело, профессия
e.g. He is looking for an occupation which will bring him profit.
11. welfare, n. ['welfeq]
12. benefit, n. / 1) благосостояние
e.g. The country’s welfare comes from its gas resources.
2) социальноеобеспечение, пособие
People who have no job or are ill are on welfare.
выгода, польза
e.g. The company will derive benefit from the contract.
benefit, v.['benefit] / приноситьпользу; извлекатьпользу
e.g. The trade contract between Russia and the Ukraine will benefit the economies of both countries.
Both Russia and the Ukraine will benefit from the trade contract.
13. community, n. [kq'mju:nqtI] / община, общество
e.g. Stability of community depends on the living standards.
business community; scientific community
14. assume, v. [q'sju:m]
assumption, n. [q'sAmpSn] / 1) принимать, обретать
e.g. These Doctrines assume at once an importance.
2) допускать, предполагать
e.g. It is possible to assume that such changes have important social effects.
предположение, допущение
e.g. Dr.Subroto questioned the scientific assumption on which the theory of global warming is based.
15. accept, v. [qk'sept] / соглашаться, принимать
e.g. Credit cards are widely accepted.
16. thus, adv. [DAs] / так, такимобразом
e.g. Thus the dollar has gone down against the yen.
17. affect, v. [q'fekt] / воздействовать, влиять
e.g. Prices of resources affect prices of goods.
18. succeed, v. [sqk'sI:d] / 1) следоватьза, сменять
e.g. Who succeeded Kennedy as President?
A new type of computers succeeded the old one.
2) (in, at) достигатьцели, преуспевать
e.g. To succeed in life one must work hard.
19. deny, v. [dI'naI] / отвергать, отказывать(ся)
e.g. He was denied a US visa.
It’s impossible to deny that it’s a very popular idea.
20. fair, adj. [feq]
21. share, n. / зд. честный, справедливый, законный
e.g. The owner of the firm is fair to his employees.
доля, часть
e.g. equal share; fair share
share, v. [Seq] / делить, разделять
e.g. Two Russian scientists shared the Nobel Prize for physics.
to share opinion; to share money
22. predict, v. [prI'dIkt] / прогнозировать, предсказывать
e.g. An economic model often helps an economist to predict different situations.
23. responsible, adj. [rI'spPnsqbl]
responsibility, n. [rIs"pOnsq'bIlItI] / ответственный
e.g. The engineer is responsible for the efficient operation of the equipment.
Mr.Adams is a very responsible sort of person.
ответственность
e.g. Someone must give orders and take responsibility for mistakes.
24. expenditure, n. [Ik'spendItSq] / расходование, расходы
e.g. The government expenditures for education have increased over the years.
25. subsequently, adv. ['sAbsIkwqntlI] / впоследствии, позднее
e.g. The book was subsequently translated into 15 languages.
26. expand, v. [Iks'pxnd] / расширять(ся)
e.g. The director plans to expand the firm into an international company.
27. tool, n. [tHl] / инструмент; способ, средство
e.g. measuring tool, production tools
Video has become an excellent teaching tool.
28. monetary, adj. ['mAnItqrI] / денежный
e.g. monetary fund, monetary support
29. fiscal, adj. [fIskql] / фискальный, финансовый
e.g. fiscal year, fiscal policy
30. insist (on), v. [In'sIst] / настаиватьначем-либо
e.g. The partner insisted on the expansion of the business.
31. argue, v. ['Rgju] / 1) аргументировать, утверждать, приводитьдоводы
e.g. The report argues against high prices for oil.
32. rationale, n. ["rxSq'na:l] / логическоеобоснование
e.g. The rationale for such initiatives is not only economic.
33. despite prep. [dI'spaIt] / несмотряна
e.g. Despite great investments the company went bankrupt.
34. face, v. [feIs] / сталкиваться
e.g. to face the facts; to face difficulties
35. remain, v. [rI'meIn]
36. matter, n. / оставаться
e.g. The problem of environmental protection still remains with us.
1) сущность, вопрос, дело
e.g. Environmental protection is a matter of great importance.
2) материал; вещество
e.g. reading matter; organic matter.
matter, v. [mxtq] / иметьзначение
e.g. It doesn’t really matter how much it costs.
37. obsolete, adj. ['PbsqlJt] / устарелый
e.g. So much equipment becomes obsolete almost as soon as it is made.

Ex.7.Read the text and do the following tasks:

  1. Name famous economists of the past.
  2. Find the verbs used in the Perfect Tense forms.
  3. Find English equivalents to the following Russian words and word combinations.

умеющий управлять хозяйством; относительно новое учение; современная экономическая мысль; свободная торговля; самостоятельно искали; также; сырье; принципы были разработаны; эволюционная стадия; отошел от классической школы; первоначальное учение; несмотря на большие различия; новое осмысление.

The History of Economics

The word “economics” is derived from “oikonomokos”, which means skilled in household management. Although the word is very old, the discipline of economics as we understand it today is a relatively recent development. Modern economic thought emerged in the 17-th and 18-th centuries as the western world began its transformation from an agrarian to an industrial society.

The classical school of economic theory began with the publication in 1776 of Adam Smith’s monumental work “The Wealth of Nations”. Adam Smith formulated economics as a science and started the doctrine of free business. He stated economic laws which explained the work of the free market. According to his philosophy, the major principles of economic liberalism or freedom were free trade, self-interest, private property, nongovernment intervention, and competition. Individuals were free to seek their own occupations, were free to enter any business. Self-interest was the motivating force of the economy. For example, to increase economic welfare, an individual decided to produce goods and sell them for a profit. But he automatically benefited the community as well, because he had purchased raw materials, provided employment, and supplied goods or services.

The principles and doctrines of classical economics were developed over many years by various economists and certain basic assumptions were accepted as the foundation of economic analysis. Thus, Jean Baptiste Say, a French economist, developed the theory that demand is affected by supply. This is often referred to as Say’s law.

Karl Marx was the founder of scientific communism. Marx saw capitalism as an evolutionary phase in economic development. He believed that capitalism would ultimately destroy itself and be succeeded by a world without private property. He stated that the market system allows capitalists, the owners of means of production, to exploit workers and deny them a fair share of what they produce. He predicted movement of society toward communism, in which the workers own the means of production and thus have no need to exploit labor for profit.

Another famous economist was John Maynard Keynes. In 1936 John M.Keynes broke from the classical tradition with the publication of “General Theory of Employment, Interest, and Money”. This British economist was primarily responsible for the early development of the income-expenditure analysis of the economy. Subsequently many others improved and expanded the original Keynesian presentation, and it has developed into an excellent tool of economic analysis. Modern monetary, fiscal, and psychological policies are difficult to understand without the knowledge of the principles of the income-expenditure analysis. These principles have been widely accepted. It was Keynes who insisted on government intervention in the economy. Keynes arguments proved the modern rationale for the use of government spending and taxing to stabilize economy.

Despite the great differences between the past and the present, the basic economic problems which society faces remain the same: what to produce, how much to produce, and what method to use in allocating goods and services. These basic problems are common to all societies no matter what level of economic development they have reached. Economists have been trying to find the right answers for many years. A new school of ideas emerges as changes in the economy give fresh understanding and make existing doctrines obsolete.

Ex.8.Form adjectives and adverbs of the following words and give their Russian equivalents. Follow the models:

Model 1Noun +” -ic “ - adjective

cube -cubic

economy- ______philosophy -______

strategy-______base-______

atmosphere-______history-______

Model 2Noun + “-al” – adjective

centre-central

industry-______origin-______

monument-______culture-______

form-______globe-______

Model 3Adjective + “-ly” – adverb

relative-relatively

recent-______free-______

ultimate-______wide-______

subsequent-______possible -______

Model 4 base word +“ –ward(s) - adverb

home-homeward

after-______in-______

south-______for-______

up-______out-______

back-______to-______

west-______north-______

Ex.9. Match synonyms in A and B.

AB

1. recent1. main

2. emerge2. egoism

3. transformation3. look for

4. major4. modern

5. self-interest5. appear

6. seek6. change

7. occupation7. supposition

8. welfare8. influence

9. basic9. business

10.ultimately10.well-being

11.assumption11.fundamental

12.affect12.finally

13.succeed13.benefit

14.interest14.reasoning

15.argument15.follow

Ex.10.Find the antonym of the first word in each line.

  1. recenta) great; b) important; c) old; d)new
  2. majora) principal; b) minor; c)difficult; d)active
  3. privatea) public; b) own; c)total; d)busy
  4. to increasea) to affect; b)to create; c)to reduce; d)to follow
  5. to purchasea) to expand; b) to find; c) to sell; d) to buy
  6. variousa) identical; b)final; c)necessary; d)free
  7. to destroya) to succeed; b)to create; c) to bring about; d)to seek
  8. to accepta) to deny; b) to use; c) to face; d) to insist on
  9. expenditure a) rationale; b) supply; c) share; d) earnings
  10. obsoletea) fresh; b) subsequent; c) different; d)monumental

Ex.11.Translate the following word combinations into Russian.

a financial state – to be in a nervous state – a gaseous state – to state a problem – to state a law – an independent state – to govern a state – welfare state – a state organization – the United States of America; a free choice – to make free use of the library – to be free to seek occupations – to be free in the evening – in a free and easy manner – free of charge – free education – a free electron – to feel free – to free the world from the threat of war – to free from taxes; academic interest –deep interest – to show interest – to take interest in economics – to be of interest for students – in the national interest – in the interest of peace – to act in one’s own interest – without interest – business interest – to work for a company at a certain interest – to receive interest from a business – a rate of interest – a conflict of interests – politics doesn’t interest me; to buy property – individual property – intellectual property – private property – a man of property – a property tax – a chemical property ; for the benefit of the nation – to derive a benefit from something -- economic benefits – tax benefits – old age benefit -- unemployment benefit – to benefit from trade – to benefit people; to accept the theory fully – toacceptthe responsibility – to accept an invitation – to accept a post -- to accept equipment – to accept a person as a business partner – to accept a check – to be generally accepted; a fair share in business – lion’s share -- a share of responsibility – a share in making a decision – ordinary shares – preference shares – to share the money equally between two partners – to share one’s opinion – to share a house with other people ; organic matter – reading matter – the matter of the report – a serious matter – a matter of importance – to give attention to the matter – What’s the matter?—the matter is that – it’s no easy matter – for that matter – no matter – it doesn’t matter at all – as a matter of fact.