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7
TEXT 2
Study carefully the meaning of the following phrases and
word combinations to avoid any difficulty in understanding the fol-
lowing text.
1. …that involve everyone – …которые касаются каждого
2. economics is concerned with – экономика имеет дело с (за-
нимается…)
3. by examining – путем изучения
4. …are regarded as uniform enough – …рассматриваются как
достаточно однородные
5. …that called for a take-over of the state by the workers –
…которая предусматривала, что рабочие возьмут на себя руково-
дство государством
6. did bring about strong economic growth – действительно
привело к экономическому росту
7. supply and demand – спрос и предложение
8. in a decentralized way – децентрализовано
9. to some extent – до некоторой степени
The Subject Matter of Economics
No one comes to economics as a traveller to an unknown land.
Much of our everyday experience is related to economics. Studying
economics is directly connected with very important things that in-
volve everyone, such as unemployment, inflation, wages, poverty,
taxes, banks, foreign currencies.
Economics is the science that deals with the production, distri-
bution and consumption of wealth and with the various related prob-
lems of labour, finance, taxation etc. Economics is concerned with the
economy or economic system. The economic system determines how
the nation's resources of land, labour, machinery and raw materials are
allocated and used. The problem of allocating resources is a central
theme of economics, because most resources are scarce. The allocation
of scarce resources and the distribution of the product of those re-
sources are a major part of the subject matter of economics.
In Western economies many resources are allocated to whoever
is willing and able to pay the most for them. The distribution is deter-
8
mined by the amounts of money paid as wages, rent and other forms of
income.
Economists use assumptions to build models, both for explana-
tion and for prediction of economic events. They summarize conclu-
sions on economic questions into economic principles. Western
economists believe that all economic questions can be analysed by
examining the decisions of individuals and the outcome of those deci-
sions made by people as consumers or as managers of firms. The
Marxist analysis of Western economies is based on the interrelations
between social classes – workers and capitalists – whose interests and
behaviour are regarded as uniform enough for a whole class to be seen
as a single unit. The Communist system was based on an economic
and social theory that called for a take-over of the state by the workers.
Although Communist central planning did bring about strong eco-
nomic growth in some countries – such as in the rapidly industrializing
Soviet Union of the 1920s and 1930s – it often resulted in long-term
inefficiency and economic stagnation.
A country's economic system is its way of organizing economic
activities, including the ways in which people come to specialize in
particular tasks they do best. There is a variety of economic systems,
which can be divided into three groups:
a) Market or decentralized economic systems in which eco-
nomic decisions are taken by individuals. Free-market economists
examine markets using a fundamental method of economics: supply
and demand analysis.
b) Planned or centralized economic systems, in which eco-
nomic decisions are taken by government planners.
c) Mixed economic systems, in which many economic activi-
ties are organized in a decentralized way, but in which the government
takes some of the most important economic decisions. In practice,
every economic system is mixed to some extent.
d) Economics is connected with such sciences as psychology,
history, law, political science, accounting, engineering, mathematics
and statistics.
TEXT 2 mined by the amounts of money paid as wages, rent and other forms of income. Study carefully the meaning of the following phrases and Economists use assumptions to build models, both for explana- word combinations to avoid any difficulty in understanding the fol- tion and for prediction of economic events. They summarize conclu- lowing text. sions on economic questions into economic principles. Western 1. …that involve everyone – …которые касаются каждого economists believe that all economic questions can be analysed by 2. economics is concerned with – экономика имеет дело с (за- examining the decisions of individuals and the outcome of those deci- нимается…) sions made by people as consumers or as managers of firms. The 3. by examining – путем изучения Marxist analysis of Western economies is based on the interrelations 4. …are regarded as uniform enough – …рассматриваются как between social classes – workers and capitalists – whose interests and достаточно однородные behaviour are regarded as uniform enough for a whole class to be seen 5. …that called for a take-over of the state by the workers – as a single unit. The Communist system was based on an economic …которая предусматривала, что рабочие возьмут на себя руково- and social theory that called for a take-over of the state by the workers. дство государством Although Communist central planning did bring about strong eco- 6. did bring about strong economic growth – действительно nomic growth in some countries – such as in the rapidly industrializing привело к экономическому росту Soviet Union of the 1920s and 1930s – it often resulted in long-term 7. supply and demand – спрос и предложение inefficiency and economic stagnation. 8. in a decentralized way – децентрализовано A country's economic system is its way of organizing economic 9. to some extent – до некоторой степени activities, including the ways in which people come to specialize in particular tasks they do best. There is a variety of economic systems, The Subject Matter of Economics which can be divided into three groups: No one comes to economics as a traveller to an unknown land. a) Market or decentralized economic systems in which eco- Much of our everyday experience is related to economics. Studying nomic decisions are taken by individuals. Free-market economists economics is directly connected with very important things that in- examine markets using a fundamental method of economics: supply volve everyone, such as unemployment, inflation, wages, poverty, and demand analysis. taxes, banks, foreign currencies. b) Planned or centralized economic systems, in which eco- Economics is the science that deals with the production, distri- nomic decisions are taken by government planners. bution and consumption of wealth and with the various related prob- c) Mixed economic systems, in which many economic activi- lems of labour, finance, taxation etc. Economics is concerned with the ties are organized in a decentralized way, but in which the government economy or economic system. The economic system determines how takes some of the most important economic decisions. In practice, the nation's resources of land, labour, machinery and raw materials are every economic system is mixed to some extent. allocated and used. The problem of allocating resources is a central d) Economics is connected with such sciences as psychology, theme of economics, because most resources are scarce. The allocation history, law, political science, accounting, engineering, mathematics of scarce resources and the distribution of the product of those re- and statistics. sources are a major part of the subject matter of economics. In Western economies many resources are allocated to whoever is willing and able to pay the most for them. The distribution is deter- 7 8
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