Discuss the following questions

1. Do you agree that economics is helpful in every day life? Give your arguments.

2. Try to think of several important decisions that you have made recently. What was the opportunity cost of each decision?

3. Do you think economics is a theoretical or applied discipline?

4. Imagine a world without a problem of scarcity. Would you enjoy living in such a world?

VOCABULARY

affluent adj – богатый

allocate v – размещать

allocation n – размещение

аrrange v – приводить в порядок

assume v – предполагать

assumption n – предположение

choice n – выбор

cost n – цена, стоимость

opportunity ~ – альтернативные издержки

~ of production – издержки производства

complementary adj – дополнительный, дополняющий

concern n – возможность, значение, интерес

deduction n – дедукция, вычет

derive v – извлекать, выводить, происходить

descriptive adj – описательный

economics n – экономика

economy n – экономика, хозяйство

goods n – товары

capital ~ – товары производственного назначения

consumer ~ – потребительские товары

luxury ~ – предметы роскоши

induction n – индукция

influence v – влиять

involve v – вовлекать, охватывать, участвовать

labour n – труд, работа

needs n (pl.) – потребности

to satisfy one’s ~ – удовлетворять потребности

principal n – капитал

procedure n – методика, метод, процесс

relevant adj – относящийся к делу, уместный

resource n – ресурс

to allocate ~’s – размещать ресурсы

scarce adj – редкий

scarcity n – 1.нехватка, дефицит; 2. редкость

~ value – стоимость, определяемая дефицитом

tangible adj – материальный

want n – желание

GLOSSARY

· Economics is the study of how individuals and society choose to allocate scarсe resources in order to satisfy unlimited wants.

· Macroeconomics applies an economy wide perspective that focuses on such issues as inflation, unemployment, and the growth rate of the economy.

· Microeconomics examines individual decision-making units within an economy.

· Models are simplified descriptions of reality used to understand and predict economic events. An economic model can be stated verbally or in a table, graph, or equation.

· Resources are factors of production classified as land, labour, and capital.

· Entrepreneurship is a special type of labour. An entrepreneur combines resources to produce innovative products.

· Scarcity is the fundamental economic problem that human wants exceed the availability of time, goods, and resources. Individuals and society therefore can never have everything they desire.

· Opportunity cost – the value of the best alternative surrended when the shoice is made.

· Needs – basic necessities or requirements.

· Want – a desire for sth.