Vocabulary notes

to distinguish two branches of the subject разграничивать два аспекта предмета

positive economics deals with objective explanations позитивная экономическая теория предлагает объективные объяснения

the working of the economy действие экономики

exchange of goods обмен товаров

the purpose of the investigation is twofold цель исследования двояка

to satisfy curiosity удовлетворять любопытство

circumstances обстоятельства

prescriptions or recommendations предписания или рекомендации

based on основанный на

personal value judgements субъективные оценки ценностей

detached scientists беспристрастные, независимые ученые

whatever our political persuasion независимо от политических убеждений

whoever кто бы ни

whenever когда бы ни

wherever где бы ни

in the first instance прежде всего

actually в действительности

at this stage на этом этапе

there is no scope for нет места

on a large scope широкомасштабно

to be concerned with интересоваться чем-либо, заботиться о чем-либо

propositions of the form формальные утверждения, суждения

in this regard в этом отношении

to be similar to быть похожим на

natural sciences естественные науки

liberal arts, humanities гуманитарные науки

in action в действии

to be desirable быть желательным

to be entirely distinct быть совершенно несхожим

substantial agreement принципиальное единомыслие

favourable weather conditions благоприятные погодные условия

wheat output производство пшеницы

to command widespread agreement привести к общей согласованности во взглядах

unresolved questions неразрешенные вопросы

where disagreement remains где разногласия продолжают существовать

research in progress исследования, проводимые в настоящее время

new issues will arise (arose, arisen) возникнут новые проблемы

to provide scope for further research создать фундамент, базу, основу для дальнейших исследований

competent and comprehensive research квалифицированная и всеобъемлющая исследовательская работа

outstanding issues спорные, остающиеся неразрешенными вопросы

corresponding claim аналогичное заявление

to claim притязать на что-либо

search for objective truth поиск объективной истины

in search of smth в поисках чего-либо

the elderly (syn. aged) пожилые люди

medical expenses расходы на здравоохранение

to subsidize health bills субсидировать расходы на здравоохранение

statement (syn. assertion) заявление

to determine whether or not it's correct определить, правильно ли это

broadly speaking в широком значении, в общем понимании

assertion (syn. statement) утверждение, заявление

to assert утверждать, заявлять

to share one's judgement (view) разделять чьи-либо суждения, взгляды

roughly equal amounts приблизительно равные количества

luxury and recreational goods предметы роскоши и товары для отдыха

to disagree reasonably приводить разумные возражения

to improve the environment охранять окружающую среду

the preferences or priorities of the individual or the society предпочтения или приоритеты отдельных лиц или общества в целом

to make a choice делать выбор

to throw light on пролить свет на

to spell out точно, обстоятельно объяснить

the detailed implications скрытый смысл, значение

failure провал, неудача

to fail smth терпеть неудачу в чем-либо

to fail an exam провалиться на экзамене

to seek (sought, sought) искать что-либо

medical check-ups медицинские осмотры

an attempt попытка

to attempt (syn. to try) пытаться

to detect smth выявить, обнаружить

check-up facilities оборудование для медосмотров

to suppose to do smth предполагать сделать что-либо

to clarify smth (syn. to clear up) пояснить что-либо

the menu of options набор вариантов

Assignments

I. Suggest the Russian equivalents

twofold; to respond to changes in circumstances; to command widespread agreement among smb; a corresponding claim; disagreement in positive economics; to be proved correct or false; to devote a great deal of resources to providing smth; to clarify the menu of options

II. Replace the parts in italics by synonyms

the price of the goods will rise, favourable conditions will increase output; the new issues will arise; medical check-ups; to devote resources to smth; when the government places the tax on the goods; there would be considerable agreement

III. Find in the text the opposites to the following

subjective; lack of interest; treat as the same; involved; not to notice or see; success; confuse; general; tilings with no claim to consideration

IV. Fill in the gaps with the words and expressions from the text

1. In studying economics it is important to two branches of the subject.

2. Positive economics deals with__________ or scientific explanations of the economy.

3. Normative economics offers prescriptions based on personal.

4. Whatever our in the first instance we have to be concerned with how the world works.

5., positive economics is similar to the natural sciences.

6.________ There would be _ that the following of positive economics is correct: favourable weather conditions will increase, reduce the price of wheat, and increase the consumption of wheat.

7.____ There are questions where disagreement remains.

8. New____________ will arise and provide for further research.

9.____ and research can in principle resolve many of the outstanding issues in positive economics.

10. The government should health bills of the aged.

11. Many people might happen this subjective judgement.

12. Some people believe that all citizens alive today should be able to

purchase roughly equal amounts of luxury goods after paying for of life, but other people might____________________________.

13._________ It all depends on of the individual or the society that has to make this choice.

14.________________ We can use positive economics the detailed implications of making the choice one way or the other.

15. Society might have to devote a great deal of resources to providing.

16. Positive economics can be used the menu of options from which society must eventually make its normative choice.

V. Find in the text English equivalents for the following

каковы бы ни были политические убеждения; в этом отношении; обла­гать товары налогом; согласованность во взглядах, единогласие в принципах; неразрешимые вопросы; исследования, проводимые в настоящее время; квалифицированная и всеобъемлющая исследовательская работа; разделять взгляды; в широком значении, в общем понимании; приблизительно равные количества; привести разумные возражения; то, чему отдается предпочтение в обществе; пролить свет на...

VI. Explain in English

predicting; personal value judgement; proposition

VII. Answer the questions

1. What are two branches of economics?

2. What does the positive economics deal with?

3. What is the aim of normative economics?

4. What is the difference between positive and normative economics in regard to the role of research?

5. What are the global consequences of the government's failure to subsidize the medical bills of the elderly?

VIII. Translate using all the active possible

1. При изучении экономики необходимо различать (2 варианта) позитив­ную и нормативную экономические теории. Если в позитивной теории мы можем оставаться беспристрастными, независимо от наших политических убеждений, то нормативная теория основывается на личной системе ценностей. В этом отношении различие между двумя теориями очень наглядно.

2. Квалифицированная и всесторонняя исследовательская работа мо­жет в некоторой степени исправить положение (3 варианта) в области нерешенных вопросов, порождающих (2 варианта) разногласия среди экономистов. В широком понимании никакая рекомендация правительству не может оказаться правильной или ложной, поскольку она основа­на на субъективных оценках.

3. Позитивная теория может предложить ряд возможных альтернатив, из которых индивид или общество в целом выбирают наиболее приоритетные.

Unit 8.

MICROECONOMICS AND MACROECONOMICS

(ТЕОРИЯ МИКРОЭКОНОМИКИ И МАКРОЭКОНОМИКИ)

Many economists specialize in a particular branch of the subject. For example, there are labour economists, energy economists, monetary economists, and international economists. What distinguishes these economists is the segment of economic life in which they are interested. Labour economics deals with problems of the labour market as viewed by firms, workers, and society as a whole. Urban economics deals with city problems: land use, transport, congestion, and housing. However, we need not classify branches of economics according to the area of economic life in which we ask the standard questions what, how and for whom. We can also classify branches of economics according to the approach or methodology that is used. The very broad division of approaches into microeconomic and macroeconomic cuts across the large number of subject groupings cited above.

Microeconomic analysis offers a detailed treatment of individual decisions about particular commodities.

For example, we might study why individual households prefer cars to bicycles and how producers decide whether to produce cars or bicycles. We can then aggregate the behaviour of all households and all firms to discuss total car purchases and total car production. Within a market economy we can discuss the market for cars. Comparing this with the market for bicycles, we may be able to explain the relative output of these two goods. The sophisticated branch of microeconomics known as general equilibrium theory extends this approach to its logical conclusion. It studies simultaneously every market for every commodity. From this it is hoped that we can understand the complete pattern of consumption, production, and exchange in the whole economy at a point in time.

If you think this sounds very complicated you are correct. It is. For many purposes, the analysis becomes so complicated that we tend to lose track of the phenomena in which we were interested. The interesting task for economics, a task that retains an element of art in economic science, is to devise judicious simplifications, which keep the analysis manageable without distorting reality too much. It is here that microeconomists and macroeconomists proceed down different avenues.

Microeconomists tend to offer a detailed treatment of one aspect of economic behaviour, but ignore interactions with the rest of the economy in order to preserve the simplicity of the analysis. A microeconomic analysis of miners' wages would emphasize the cliaracteristics of miners and the ability of mine owners to pay. It would largely neglect the chain of indirect effects to which a rise in miners' wages might give rise. For example, car workers might use the precedent of the miners' pay increase to secure higher wages in the car industry, thus being able to afford larger houses, which burned more coal in heating systems. When microeconomic analysis ignores such indirectly induced effects it is said to be partial analysis.

In some instances, indirect effects may not be too important and it will make sense for economists to devote their effort to very detailed analyses of particular industries or activities. In other circumstances, the indirect effects are too important to be swept under the carpet and an alternative simplification must be found.

Macroeconomics emphasizes the interactions in the economy as a whole. It deliberately simplifies the individual building blocks of the analysis in order to retain a manageable analysis of the complete interaction of the economy.

For example, macroeconomists typically do not worry about the breakdown of consumer goods into cars, bicycles, televisions, and calculators. They prefer to treat them all as a single bundle called "consumer goods" because they are more interested in studying the interaction between households' purchases of consumer goods and firms' decisions about purchases of machinery and buHdings.