ECONOMICS

Date: 2015-10-07; view: 446.

Read and translate the text.

There is almost universal agreement that economies are becoming more complex every year and that an under­standing of how an economy works is more important than ever before. For someone who is just beginning to study economics, the task indeed appears to be a difficult one. Economics is the study of the way in which mankind or­ganizes itself to solve the basic problem of scarcity. All societies have more wants than resources, so that a system must be devised to allocate these resources between com­peting ends. In a very real sense, the complexity of the economy makes it difficult to decide exactly where to start. Simultaneously, production is taking place, goods and services are being allocated, and a great number of market participants are being motivated by a diverse set of goals. In addition, there is the complex financial system in which individuals, firms, and governments borrow and lend funds.

Economics is divided into two major branches: macro­economics and microeconomics. Macroeconomics is the study of behavior of the economy as a whole with empha­sis on the factors that determine growth and fluctuations in output, employment, and the level of prices.Macroeco­nomics studies broad economic events that are largely be­yond the control of individual decision makers and yet af­fect nearly all firms, households, and other institutions in the economy. Specialists in macroeconomics are particu­larly interested in understanding those factors that deter­mine inflation, unemployment, and growth in the produc­tion of goods and services. Such an understanding is necessary in order to develop policies that encourage pro­duction and employment while controlling inflation.

The other major branch of economics is microeconomics. Microeconomics is the study of behavior of individual units within the economy. The division of economics has resulted from the growing complexity and sophistication of economic research.

These two approaches and the topics they include are in fact interdependent. Individuals and firms make their deci­sions in the context of the economic environment, which has an impact on the constraints the decision makers face as well as their expectations about the future. At the same time, when taken as a whole, their decisions determine the condition of the overall economy. A good understanding of economic events and an ability to forecast them require knowledge of both individual decision making and the way in which individuals react to changes in the economic environment.

1. Answer the questions:

1. Economies are becoming more complex every year. Why?

2. What is economics?

3. What is the main division of economics?

4. What is macroeconomics "responsible for"?

5. What does microeconomics deal with?

2. Give the English equivalents to the following:

человечество, распределять ресурсы, сложность экономики, одновременно, участники рынка, занимать и одалживать, поведение, домашнее хозяйство, для того чтобы, контролировать инфляцию, взаимозависимые, предсказывать экономические события, требовать знания, экономическая среда.