Comprehension Check. 1. Complete the following sentences

1. Complete the following sentences.

1. The economic theory of mercantilism ….

2. Some French philosophers and economists claimed that ….

3. … in 1776.

4. A. Smith objected to ….

5. According to Smith, ….

6. Adam Smith used the term «invisible hand» to ….

2. Answer the questions.

1. What was the difference between mercantilists’ and physiocrats’ views?

2. What idea was expressed in the slogan «laissez faire»?

3. Why did the year of 1776 become very significant for the development of the world economic thought?

4. Who is considered to be the father of economics?

5. What theories formed the core of Smith’s philosophy?

6. Why has Adam Smith remained a significant figure in the history of economic thought?

3. Read the text once more and explain the meaning of the phrases below.

“balance of trade ”

“laissez faire ”

“invisible hand ”

Vocabulary Focus

1. Provide appropriate English equivalents of the following collocations.

- бороться (конкурировать) за прибыль

- поддерживать промышленность

- природные ресурсы

- источник состояния

- правительственное регулирование

- производить те товары, которые нужны потребителям

- превзойти конкурентов

- предоставлять товары и услуги по самым низким ценам

- история экономических учений.

2. Fill in the prepositions, if necessary. Translate the sentences into Russian.

1. Free market system allows businesses to compete … profit with a minimum of government interference.

A) for b) with c) on

2. There are several reasons why I object … joining you.

A) with b) to c) -

3. The production of this equipment depends … demand.

A) in b) on c) at

4. Our company can provide goods or services … a low cost.

A) at b) on c) of

5. You will gain … no profit by resistance.

A) by b) in c) -

3. Use the vocabulary of the text to complete these sentences.

1. An individual who buys products or services for personal use and not for manufacture or resale is …

a) a consumer

b) a merchant

c) an exporter

2. In economics, … is the amount of goods and services by a firm, industry, or country.

a) trade

b) output

c) profit

3. A fundamental economic concept that describes the total amount of a specific good or service that is available to consumers is …

a) demand

b) supply

c) a law

4. Adam Smith saw the creation of … as the combination of materials, labor, land, and technology in such a way as to gain profit.

a) costs

b) society

c) wealth

5. The Peugeot engine has … its competitors this season.

a) competed

b) benefited

c) outperformed

6. I didn’t want to … him or his company.

a) rival

b) compete

c) produce

Talking Points

1. Economic thought may be roughly divided into three phases:

· Premodern (Greek, Roman, Arab);

· Early modern (mercantilists, physiocrats);

· Modern (since Adam Smith in the late 18th century).

What new facts have you learnt about it from the text? Can you add anything else?

2. Comment on the quotation.

“Labor was the first price, the original purchase - money that was paid for all things. It was not by gold or by silver, but by labor, that all wealth of the world was originally purchased.” Adam Smith.

Summary Points

1. What is the basic topic of the text about first economists?

2. Draw up an outline of the text and give a one-sentence summary of each point.

3. Add some important information and make a conclusion: What have you learned from the text? Have you found it informative/ helpful/ interesting?