Дмитриева Светлана - English for Economists and Managers (Английский язык для экономистов и менеджеров) PDF

Copyright ОАО «ЦКБ «БИБКОМ» & ООО «Aгентство Kнига-Cервис»
МИНИСТЕРСТВО СЕЛЬСКОГО ХОЗЯЙСТВА

РОССИЙСКОЙ ФЕДЕРАЦИИ
ФГБОУ ВО ПЕНЗЕНСКАЯ ГСХА
Кафедра «Философия, история и иностранные языки»

С.Ю. Дмитриева
ENGLISH FOR ECONOMISTS AND MANAGERS

(Английский язык для экономистов и менеджеров)
Учебное пособие
Пенза, 2016
1
УДК 802.0(075)
ББК 81.2Англ. (я7)
Д 53
Рецензент – И.Е. Шпагина, кандидат экономических наук, доцент

кафедры «Бухгалтерский учет, анализ и аудит» ФГБОУ ВО Пензенская
ГСХА
Дмитриева, Светлана Юрьевна

Д 53 Английский язык для экономистов и менеджеров: учебное
пособие / С.Ю. Дмитриева. – Пенза: РИО ПГСХА, 2016. – 217 с.
Учебное пособие подготовлено в соответствии с рабочими програм-

мами дисциплины «Иностранный язык», разработанными для студентов
уровней бакалавриата, обучающихся по направлениям подготовки 38.03.01
– Экономика, 38.03.02 – Менеджмент; специалитета, обучающихся по на-
правлению подготовки 35.05.01 – Экономическая безопасность в качестве
основного пособия, а также может стать удачным дополнением к основно-
му курсу магистратуры, т.к. поможет разнообразить языковое общение на
занятиях по дисциплине «Деловой иностранный язык».
© ФГБОУ ВО
Пензенская ГСХА, 2016
© С.Ю. Дмитриева, 2016
2
Предисловие
Данное пособие предназначено для студентов 2-го курса

экономического факультета, продолжающих изучать дисциплину
«Иностранный язык» (английский). Содержание, объем и струк-
тура пособия также отвечают программным требованиям и на-
правлены на формирование следующих общекультурных компе-
тенций:
ОК-14: Способность к деловому общению, профессиональ-
ной коммуникации на одном из иностранных языков
ОК-16: Способность работать с различными источниками
информации, информационными ресурсами и технологиями,
применять основные методы, способы и средства получения,
хранения, поиска, систематизации, обработки и передачи инфор-
мации, применять в профессиональной деятельности автоматизи-
рованные информационные системы, используемые в экономике,
автоматизированные рабочие места, проводить информационно-
поисковую работу с последующим использованием данных при
решении профессиональных задач
ОК-4(ОК-5 менеджеры ): Способность к коммуникации в
устной и письменной формах на русском и иностранном языках
для решения задач межличностного и межкультурного взаимо-
действия.
ОК-7 Способность к самоорганизации и самообразованию.
Основной целью данного пособия является формирование у
студентов навыков самостоятельно читать спецлитературу на
английском языке с целью извлечения из нее необходимой ин-
формации, пользоваться иностранным языком в сфере профес-
сиональной деятельности.
Пособие имеет четкую и логичную структуру. Задания
представлены последовательно в понятной и доступной форме,
что способствует качественному усвоению материала при само-
стоятельной подготовке. Автором выбраны все необходимые
грамматические явления, которые характерны для спецлитерату-
ры. Тематика и терминология текстов отвечают программным
требованиям.
3
UNIT I
THE BASICS OF ECONOMICS
Lesson 1 Economics
Lesson 2 Economic Outline of a Country
Lesson 3 Economic Development of Russia
Lesson 4 Economic Security
Lesson 5 Demand and Supply
Lesson 6 Money and Banking System
Lesson 7 Agricultural Economics
4
LESSON 1
Compare the words:

Economy – economics
Economic – economical
Economy is a system by which a country‟s trade, industry and money

are organized.
Economics is the study of the way goods and services are produced.
Task 1. Use: «economy» or «economics.»

Applied …; natural …; market …; command …; agricultural …; de-
scriptive …; developed …
Economic means relating to the economy of a particular country or

region.
Economical means 1) not spending or costing much money; 2) not
wasting anything.
Task 2. Use: «economic» or «economical.»

… theory; … faculty; … wife; … method; … laws.
Introduction Text
Economics
Economics – how people satisfy their needs and wants – has

been a powerful force in history. People have always struggled with
others over land, oil, gold, fishing rights and so on. Every country tries
to provide for its people. How countries do that is the story of eco-
nomics.
Think of all the things you have got. You have clothes, food, and
a home. Perhaps, you have got a bicycle, a stereo, or a car. Ask your-
self which of these things you could do without. Can you do without
food? Yes, you could do for a while, but not for long. Food is some-
thing you must have in order to live. Food is something we call a
need.
5
Even though you may have got a great many things, you proba-
bly do not have everything you would like to have. A thing you could
do without is called a want.
Resources can be divided into three groups: land, labour and capital.
Everything we need or want is produced using these three things.
Land, labour and capital are called the factors of production.
Land resources include more than just land itself. Soil, of course,
is an important resource. It lets us grow food. Also, parts of the land
are plants, animals, water, oil, and metals. All these things can be tak-
en from the land. But the amount of land, water, oil, and so on is li-
mited.
Labour is the work people do with their hands and their minds.
Carpenters, for example, build houses with their hands. Singers, make
music with their minds and voices. A carpenter provides goods. A
singer provides services. Both are the parts of the resource we call la-
bour. Labour is also a limited resource. Not everyone is a good car-
penter or singer. You probably wouldn’t want a house built by your
favourite singer, and you probably wouldn’t want to listen to your
carpenter sing. Since not everyone can do everything well, labour is a
limited resource.
Capital is the machines, buildings, and tools used to make things
(products). Capital is something made by people. Like land and la-
bour, capital is a limited resource.
Land, labour, and capital all work together to produce goods and
services we need. A product, such as a house is made of wood and
stone from the land. Workers put these materials together with their
labour. They also use capital such as hammers, saws, trucks and other
equipment in their work.
As for services, imagine a musical group giving a concert. The
place where the concert is held is land. The singing and playing of the
band members is labour. The building where the concert is held is
capital.
Goods and services are provided because people work to meet
the needs and wants of themselves and other people. People all over
the world have many of the same needs and wants. However, because
of limited resources we can’t produce everything that everybody
wants. There is a scarcity of resources. Therefore, we have to make
6
choices. The value of things you give up when you make choices is
called opportunity cost.
An economic activity is anything people do to meet wants and
needs. The things people do to provide goods and services can be di-
vided into three groups. We call these groups the basic economic ac-
tivities. They are: taking materials from the earth; making things and
providing services.
Exercises
1. Scan the text.
2. Answer the questions: «Have you got any new information?

What is it about?» Use: I’ve learned that (about) …
3. Continue the following: a) Economics is … b) A need is … c) A

want is … d) Factors of production are … e) We can’t produce every-
thing we want, because of …
4. Comment on the table. Give your examples to illustrate it.
resources
Land (soil, water, oil, Labour (hands and Capital (machinery,
metals,…) minds) buildings, tools)
factors of production goods, services
5. Refer the following words into two categories: goods or servic-

es: haircuts, food, cars, taxi, education, shoes, houses, medical care,
roads, fitness club, a dictionary, translation.
6. In groups of four, discuss the question: «Economics has been

called the study of scarcity and choice. How does this relate to your
budget for a week?»
Report back to the entire class on your major conclusions.
7
Grammar Revision
to be, to have, to do
1. Translate the sentences paying attention to the different func-
tions of the verbs «to be,» «to have,» «to do.»
1) He is our new bookkeeper. 2) Where is your resume? 3) A
company is also called a business. 4) When a manufacturing company
expands it is to increase its production. 5) Are you on business? – Yes,
I have to go, because Petrov is ill. 6) Do you run your own business?
7) I do my work on time. 8) I have got a lot of duties. 9) I do play
chess well. 10) We don’t want to employ more workers. 11) Poor
countries have to export raw materials abroad. 12) Do you have
enough time for hobby? 13) When resources are limited choices are
limited as well. 14) The UK economy has recently experienced eco-
nomic growth combined with low inflation and falling unemployment.
15) They are making a report. 16) I have ( got ) a cold. 17) He has an
appointment. 18) I’ll do my best. 19) He is the most interesting
person I have ever met. 20) People have to make choices because of
the scarcity of resources.
2. Use: am, is, are.

1) He … a millionaire. 2) You … French. 3) I … a new manag-
er. 4) It … a car. 5) Nick … from Glasgow. 6) Ann … a doctor.
7) We … to go there. 8) He … checking the accounts now. 9) We …
on business. 10) They … invited to the party. 11) What … the oppor-
tunity cost? 12) Profit dictates how goods … produced.
3. Use: have (got), has (got).

1) We … many relatives in Moscow. 2) They … to study many
subjects. 3) She … a good computer. 4) I … done the work. 5) Recent
years … generally seen the fastest growth in the services sector.
6) David and Mike … to correct all their mistakes in the balance-
sheet. 7) Nick … to make up a price list. 8) I … a good day.
4. Use: do, does.

1) … you like this book? 2) We … this work together. 3) You …
not play tennis. – But I … 4) He … his work on time. 5) Julia and Ann
… work in my office. 6) My brother … not want to live in a noisy
8
street. 7) I … not know any country with a pure market or command

economy. 8) … mixed economy contain elements of both types?
noun as an attribute
1. Translate the word combinations.

Market economy, farm product, soil quality, pension fund, pro-
duction possibilities, production level, opportunity cost, command
economy, consumer goods, weather forecast, summer rain, winter hol-
idays, English test, public choice theory, government support, plant
protection means, farm labour, resource scarcity, key question.
2. Make up various word combinations and translate them.

Harvest, school, university, centre, time, day, the Earth, year,
government, duty, farm, village, autumn, apple, population, lamp, pie,
home, assistant, task, lab, cattle, table, beef, library, credit.
questions
3. Ask questions to the sentences (general, special).

1) I study descriptive economics. 2) The amount of resources is
limited. 3) We have done the work. 4) People have to make choices
every day in their life. 5) He is writing a report on the topic «Demand
and Supply». 6) Yesterday she came early. 7) Often, nonprofit groups
work with a fixed budget. 8) Ann will make a report on profit. 9) In a
command economy decisions were left to bureaucrats (чиновники).
10) I shall have made up this document by 6 o’clock.
Word-building
4. Give nouns for the following verbs. Eg. to work – worker
to operate – …
to produce – …
to make – …
to distribute – …
to buy – …
to sell – …
to compete – …
to export – …
to import – …
9
5. Translate the words.

Produce – to produce – productive – productivity – production –
producer
Profit – profitable – profitability
To consume – consumptive – consumer – consumable – con-
sumption
Useful Words and Word Combinations
activity – деятельность
amount – количество, объем
consume – потреблять
consumption – потребление
demand – спрос
distribution – распределение
expenditure – расходы, затраты
factors of production – факторы производства
free of judgment – беспристрастный
give up – отказаться, пожертвовать
goods – товары
individual – человек
input – капиталовложения
key – ключ, ключевой
law – закон
make a choice – делать выбор
make a decision – принимать решение
output – выпуск продукции
owe – обязан
owe their origin – обязан своим происхождением
prediction – предсказание, прогноз
price – цена
product – изделие, продукт
production – производство
profit – прибыль
quality – качество
quantity – количество
relationship – отношение
sacrifice – пожертвовать
10
satisfy – удовлетворять
scarce – дефицитный
scarcity – дефицит
supply – предложение
surplus(es) – излишки
trade – торговля
yield – урожай, доход, приносить доход
Exercises
1. Translate the sentences.
1) Business activity is aimed at getting profit. 2) Not all re-
sources are scarce. 3) Because resources are scarce, only a limited
amount can be produced from them, and there arises the necessity for
choice. 4) Macroeconomists typically do not worry about the break-
down of consumer goods into cars, bicycles, televisions, and calcula-
tors. 5) The law of demand was discovered by A.A. Cowrnot. 6) The
term opportunity cost refers to the most desirable of the alternatives
not chosen. 7) Consumers are ready to buy more at lower prices.
8) Expenditure should ideally not exceed income. 9) Land, labour and
capital are called the factors of production. 10) Industrial output in-
creased by four per cent last year. 11) Investors have made a 14 %
profit in just three months. 12) This committee decides how the mon-
ey is distributed.
2. Match the words with their definitions.
Consumer a) condition of having comfortable living and work-

Income ing conditions, good health, etc.
Employment b) money that someone gets from working or from
Welfare investing money
c) someone who buys and uses goods and services
d) a situation in which someone has regular paid
work
11
Reading
Text A
The Science of Economics
Economic activity began with the advent of towns and villages,

which, in turn, owe their origin to the agricultural surpluses that al-
lowed men and women to turn to crafts and trades. But the science of
economics really began only about three hundred years ago, with the
publication of Adam Smith’s monumental book «The Wealth of Na-
tions.»
Economics is a study of the production, distribution, and con-
sumption of goods and services in a society. It concerns itself with
two key variables: inputs and outputs. Inputs include labour, land and
commodities, such as energy or minerals, which companies require to
turn out their products. Outputs are the goods and services that com-
panies produce for consumption or further production. Economics is
concerned with relationships. It also employs scientific tools to dis-
cover the laws that regulate economies. The description of economic
facts and relationships falls within the purview of descriptive econom-
ics, so named because it is supposed to be free of judgment. Descrip-
tive economics is a pure science. Its questions can be answered only
by facts.
Economics is a tool that can help society solve three fundamen-
tal problems: (1) what commodities it should produce and in what
quantity; (2) how it should produce its goods; and (3) for whom it
should produce them.
Of course, there are many ways for a society to solve the three
basic problems. In a command economy the government dictates pro-
duction and distribution goals. Decisions are left to bureaucrats.
In a market economy the government takes a back seat to the
marketplace. In such an economy companies generally produce goods
and services that yield the highest profit, thus answering the question,
what goods and services and in what quantity. Profit dictates how
goods are produced. Generally, the least costly method of production
yields the greatest profit. In a market economy the question «for
whom?» is determined by money.
12
In truth, most nations’ economies are mixed, that is they contain

elements of market and command economies. The mixed economies
of Great Britain, Canada and the United States, for example, all pro-
mote free enterprise, a system driven by supply and demand, but gov-
ernments of these countries also influence and even regulate their
economies to one degree or another.
Exercises
1. Read and translate the text.
2. Find English equivalents for the following word combinations:

экономическая деятельность, в свою очередь, излишки с/х про-
дукции, фундаментальная, переменные величины, полезные ис-
копаемые, выпускать (изделия, продукцию), дальнейшее произ-
водство, наука в чистом виде, предмет потребления, метод наи-
меньших затрат на производство.
3. Answer the questions to the text.

1) When did economic activity begin?
2) When did the science of economics begin?
3) What is economics?
4) What do inputs and outputs include?
5) What is descriptive economics?
6) What are three fundamental problems of a society?
7) Who dictates production, consumption and distribution goals
in a command (market) economy?
8) What can you say about mixed economy?
4. In pairs, complete the dialogue. Give necessary information

from the text.
Use the speech patterns: To my mind – По-моему …
It is true that … – Верно, что …
You are mistaken. – Вы ошибаетесь
You are right to a certain extent. –
Отчасти, Вы правы.
I’m afraid, no. – Боюсь, что нет.
13
Dialogue
– I think the advent of towns had played the major part in the
development of economics.
–…
– Have you ever seen Adam Smith’s book «The Wealth of Na-
tions»?
–…
– To my mind, economics cannot be a science at all. Do you
agree with me?
–…
– I think all nations’ economies are mixed. Am I right?
–…
– A good knowledge of economic principles helps people to pre-
dict their future. Is it true?
–…
– Economics can be useful in everyday life, can’t it?
–…
5. Find in the text all nouns in the function of an attribute.
6. Retell the text.
Text B
An Overview of Economic Systems
The basic economic questions of what, how and for whom to

produce are answered in different ways in different societies.
Command economies are sometimes called planned economies.
They rely almost totally on government to make economic decisions
through centralized authorities and the government owns all the major
productive resources. Pure command economies are largely mythical
creatures, but the former Soviet Union and some other eastern block
countries are examples of countries with economic systems in which
government direction is dominant.
The government makes major decisions about where an individ-
ual works and lives, what consumer goods are produced and who gets
them, and how many resources are devoted. Command economies
permit only limited private ownership.
14
However, a central authority has got little information available

about individual consumer preferences. Efficient organization of pro-
duction is also very difficult in a command economy. However, un-
employment, inflation are very rare phenomenon in a command econ-
omy.
Market economy permits private ownership. In market econo-
mies most productive resources are owned by private individuals (as
households or through the businesses they own). The basic economic
questions are answered by the actions of buyers and sellers as they ne-
gotiate exchanges in the marketplace.
In market economies, individuals make economic decisions in
response to market signals and on the basis of their own preferences.
In a pure market economy government has got little (if any) role to
play. However, in all but the very purest or imaginary market econo-
mies, government is called upon to protect individuals and their prop-
erty rights. Government provides services that markets cannot provide
well.

Exercises
1. Scan the text.

2. Complete the table.
Command economy Market economy

main features main features
advantages disadvantages advantages disadvantages
For ideas: to serve as arbitrator when legal disputes arise; to

dictate, economic laws, medical care; education, police, army, to redi-
stribute income; free of charge; to provide social security, economic
balance, social care; unemployment; inflation; free competition.

15
BE READY
1. Match the words with their definitions.
a) the gifts of nature that are used to produce

goods and services. They include land, timber,
Human resources
fish, oil and mineral deposits, the fertility of soil,
climatic conditions and so on;
b) the health, strength, education and skills of
Natural resources
people;
c) the buildings, equipment, roads and other manu-
Capital
factured and constructed things.
2. Test yourself.
1) The situation in which resources are limited and can be used
in different ways, so that we must sacrifice one thing to another is
called (…) a) choice; b) economics; c) scarcity; d) opportunity cost.
2) People must make choices of what to consume because
of (…) a) factors of production; b) scarcity; c) elasticity
3) Which of the following are factors of production? (…)
a) human capital; b) scarcity; c) production possibilities
4) Which of the following are not factors of production? (…)
a) labour; b) physical capital; c) land; d) time; e) human capital
5) Human effort used to produce goods and services is
called (…) a) natural resources; b) labour; c) physical capital; d) hu-
man capital

3. Make a report. The topics:
1) It is difficult to make choices in our life.
2) I want to become an economist.
16
LESSON 2
Compare the words:

Social, society, sociable, socialism
Social means 1) relating to society and to people‟s lives in general;

2) relating to the position that someone has in society relating to other
people; 3) relating to activities that involve being with other people.
Society means 1) people in general living together in organized com-
munities, as well as people who live in a particular country; 2) an or-
ganization or club for people who take part in a particular activity.
Sociable is relating to a person who is friendly and enjoys being with
other people.
Socialism means a political system that aims at creating a society in
which everyone has equal opportunities and in which the most impor-
tant industries are owned or controlled by the whole community.
Task 1. Insert the proper word: social, sociable, society, socialism.

1) They try to address (…) problems such as unemployment and
poor health. 2) (…) is a system where private property is not domi-
nant. 3) The scheme aims to encourage the reintegration of prisoners
into (…). 4) There has been a progressive deterioration of the (…)
conditions of small farmers. 5) I’m not feeling very (…) today.
Task 2. Fill in the grid.

1) A developing tend(s) to … a) be an industrial country.
country must … b) be an agrarian country.
2) A developed c) import raw materials.
country d) export raw materials.
3) Both develop- e) have high living standard.
ing and developed f) have real incomes lower than necessary.
countries g) have sagging economy.
h) have hard currency.
i) participate in ICT (Information Commu-
nication Technology)
j) have dynamic interest rate policy.
k) make choices.
l) deal with unemployment and inflation.
17
Introduction text
Economy and Economic Systems
Economy is a social mechanism which answers the main eco-

nomic questions. The economy means a system for the management,
use and control of the money, goods and other resources of a country,
community or household. Every human society – whether it is an ad-
vanced industrial nation, a centrally planned economy, or an isolated
planned economy – must confront and resolve three fundamental and
interdependent problems; 1) what to produce; 2) how to produce; and
3) for whom to produce goods and services. Different societies take
different approaches in solving them.
Every country has its own history of economic development.
And in their history all countries try to reach four major economic
goals that are generally accepted. These goals are:
- full employment;
- price stability;
- equitable distribution of income;
- safety and security.
People and societies organize economic life to achieve these
goals through economic systems. An economic system can be de-
scribed as the collection of institutions, laws, activities, controlling
values and human motivations that collectively provide a framework
for economic decision-making.
Many economic systems have been undergoing fundamental
changes during the last decades of the 20th century. The elements of
tradition have been more evident in the rural areas of the developing
countries of Asia and Africa, yet even those rural areas have partici-
pated in elements of a market economy and/or a command economy.
The element of a command economy had been most evident in the
former Soviet Union until the country collapsed and was replaced by
15 independent countries. China, which describes itself as a command
economy, has many elements of traditional and market-price econo-
mies. The American economy is a mixed capitalistic economy, in
which both government and private decisions are important; it is an
economic system in which there is private ownership of capital, free-
dom of enterprise, competition, and reliance upon markets.
18
Exercises
1. Scan the text.
2. Answer the question: «Have you got any new information?

What is it about? »
3. Find sentences about: a) economic questions; b) economic

goals; c) economic systems. Translate them.
4. Explain in your own words the meaning of the concepts:

equal distribution of income; price stability; full employment; crisis
5. Divide the text into logical parts. Formulate the main idea of
each part.
Grammar Revision
there is/there are


1. Use: is, are.
1) … there any new students in your group? 2) There … old
houses in our street. 3) There … not any milk in the fridge. 4) There
… three main questions in economic science. 5) What … there in the
office? 6) There … nothing to do. 7) There … a lot of things we want
to have. 8) There … a scarcity of resources. 9) There … many prob-
lems for the manufacturing company: packaging, transportation, in-
surance, and payment. 10) There … a shipping company that is en-
gaged in transportation goods.
2. Make the sentences interrogative and negative.

1) There is a milk processing complex in our street. 2) There is
some money to carry the loss (возместить потери). 3) There are a lot
of documents on your desk. 4) There are some risks in export trade.
5) There may be some questions customers might ask about the prod-
uct.
19
It
1. Translate the sentences with «it».

1) I cannot find my ticket. I think I must have lost it. 2) It is stuf-
fy in the train, isn’t it? 3) Don’t do it again. 4) You should come to
Rome – it is a wonderful city. 5) Is it a boy or a girl? 6) It is nice to be
home again. 7) It annoys me to hear people blaming everything on the
government. 8) The new law made it easier to get a house in an own-
ership. 9) It seems that no one is willing to accept responsibility for
what happened. 10) It looks as we are going to lose our jobs. 11) It is
winter now. 12) It is not feasible to invest money into this project.
13) It rained in the night. 14) It is 4 o’clock. 15) It was nearly mid-
night when we got home. 16) It was farm surplus that gave birth to
trade. 17) It was a year ago today that I started working for this com-
pany. 18) It is not that government shouldn’t take part in the economy;
it is just that market should be free to operate. 19) It seems strange
that Adam Smith’s theory worked out some centuries ago is still ac-
tual today. 20) It is John M. Keynes who put forward a new concept of
government participation in the economy. 21) Money serves as the
store of value because it is the most liquid. 22) Great Britain is no
longer the imperialist power it used to be. It has lost its colonies which
used to supply it with cheap raw materials. 23) It is my uncle’s farm.
It is rather profitable.
Word-building
1. Give derivatives of:
economic, employment, competition, scarcity, supply, regulation, pro-
duction, allocation, expansion, growth, political.
2. Read and translate the words:

΄produce – to pro΄duce; ΄export – to ex΄port, ΄import – to im΄port;
manufacture – to manufacture; market – to market; trade – to trade;
increase – to increase; supply – to supply.
3. Translate the words paying attention to the suffixes.

Use – useless, care – careless, worth – worthless, job – jobless, home
– homeless.
20
aircraft industry – авиационная промышленность

approach – подход
article – 1) статья; 2) изделие
be employed in industry (agriculture) – быть занятым в пром-
сти (с/х)
bring about smth. – приводить к чему-либо
chemicals – изделия хим. промышленности
competition – конкуренция
consumer goods – потребительские товары
decrease – понижать(ся)
disperse – рассредоточивать
do away with smth. – покончить с чем-либо
economic growth – экономический рост
employ smb. – нанимать, задействовать
exhaust – истощать
expand trade in smth. – развивать торговлю
GNP (gross national product) – валовой национальный продукт
goal – цель
heavy industry – тяжелая промышленность
increase – повышать(ся)
industrial output – промышленный выпуск
light industry – легкая промышленность
machinery – оборудование
make emphasis on – делать упор
make progress – добиться прогресса
manufactured goods – промышленные товары
manufacturing – 1) производство; 2) обрабатывающая про-
мышленность
mining – добывающая промышленность
package – упаковывать
per head of population – на душу населения
precision instruments – точные инструменты
private ownership – частная собственность
process smth. – перерабатывать
rate – темп, норма, процентная ставка
reach – достигать
21
revival – оживление, возобновление

share – доля
skilled labour – квалифицированный труд
standard of living – уровень жизни
technique – прием, техника
tend to do smth. – иметь тенденцию
textiles – изделия текстильной промышленности
undergo – испытывать, подвергаться
unemployment – безработица
welfare – благосостояние
wool – шерсть
Exercises

1) People who have just faced unemployment try to reduce their
expenditures to some extent. 2) The crisis brought about inflation and
mass unemployment. 3) The choices people make as consumers, em-
ployees, business owners, and government officials create the econo-
my. 4) For every person employed in agriculture eleven people are
employed in mining, manufacturing and building. 5) The country
tends to produce and export manufactured goods. 6) Our complex is
engaged in processing raw materials. 7) The large-scale privatization
has brought about private ownership. 8) I prefer to buy high quality
consumer goods from leading designers. 9) In the past century the tra-
ditional industries such as mining and manufacturing were less pro-
gressive and this fact forced Britain to make emphasis on new indus-
tries such as car manufacture aircraft industry, and space engineering.
10) Government is always responsible for living standard in the coun-
try. 11) Economists usually study economic growth over long periods
of time.
2. Make up pairs of opposites in the list of words.

Industry, urban, light industry, income, rural, revival, agricul-
ture, decline, consumption, heavy industry, manufacturing, import,
loss, input, increase, decrease, surplus, output, to rise, lack of, arable
land, to fall, pasture, export.
22
3. Think of the facts that lead to a favourable (or unfavourable)

economic situation in a country and fill in the grid.
a favourable economic situation in a a unfavourable economic situation in a
country means … country means …
For ideas: industrial output, debts, GNP, standard of living, for-

eign trade, revenue, un(employment), (un)stable political situation, in-
flation, economic growth.
Reading
Text A
British Economy
Britain lives by manufacture and trade. For every person em-

ployed in agriculture eleven people are employed in mining, manufac-
turing and building. The UK is one of the world’s largest exporters of
manufactured goods per head of population.
Apart from coal and iron ore Britain has got very few natural re-
sources and mostly depends on imports. Its agriculture provides only
half the food it needs. The other half and the most of the raw materials
for its industries such as oil and various metals have to be imported.
Britain has to import timber, cotton, fruit and farm products.
The country used to be richly forested, but most of the forests
were cut down to make room for cultivation. The greater part of land
is used for cattle-raising, sheep-raising and pig breeding. Among the
crops grown on British farms are wheat, barley and oats. The fields
are mainly found in the eastern part of the country. Farms tend to be
bigger where the soil is less fertile.
In the 19th century Britain secured a leading position in the
world as manufacturer, merchant and banker. After World War I the
world demand for the products of Britain’s traditional industries –
textiles, coal and machinery fell off, and Britain began expanding
trade in engineering products and electrical goods.
The crisis of 1929-1933 brought about mass unemployment,
which reached its peak in 1932. Britain’s share in the world industrial
output decreased. After the crisis there was some revival in produc-
23
tion, employment and world trade as the result of extensive armament

program.
After World War II the situation radically changed. Now Britain
is no longer the leading imperialist power it used to be. It has lost its
colonies which used to supply it with cheap raw materials.
Britain produces high quality expensive goods which have al-
ways been characteristic of its industry. It mostly produces articles re-
quiring skilled labour, such as precision instruments, electronic
equipment, chemicals and high quality consumer goods, among them
are cotton goods, leather goods, and woolen goods.
The original basis of British industry was coal-mining, and the
early factories grew up not far from the main mining areas. Glasgow
and Newcastle became great centres of engineering and shipbuilding.
Lancashire produced cotton goods and Yorkshire woollens, with Shef-
field concentrating on iron and steel. Birmingham developed light en-
gineering. Then there appeared a tendency for industry and population
to move to the south, particularly to London area. Now there is a great
progress in the development of new industries, such as aircraft, auto-
mobile, electronic industries and others.
Exercises

a) What natural resources does Great Britain have?
b) What raw materials does Great Britain import?
c) What produce does the country export?
d) What did the crisis of 1929-1933 bring about?
e) What is a characteristic feature of British industry?
f) What are the main articles produced by British industry?
g) What are the main industrial centres of the country?
h) What can you say about British agriculture?
3. Complete the sentences.

1) Great Britain is rich in (oil, gold, copper, silver, iron ore,
zinc, coal).
24
2) The UK has to import (coal, agricultural products, electrical

goods, oil, cotton, tobacco, fruit, wheat, various metals).
3) It produces (cheap articles, raw materials, high quality ex-
pensive goods, articles requiring skilled labour, precision instru-
ments).
4) The new industries of the country are: (the aircraft industry,
the electronic industry, the textile industry, the shipbuilding industry,
the automobile industry).
5) In the UK they mostly breed (cattle, horses, sheep, pigs, rab-
bits).
4. In pairs, prove the ideas.

Use: It is true because …
a) Great Britain is an industrial country.
b) Britain depends on imports to a great extent.
c) The original basis of British industry was coal-mining.
d) Britain produces high quality expensive goods which have
always been characteristic of its industry.
5. Write an annotation to the text. Use the following pattern:

1) The title of the text is …
2) This text is (economic, agricultural, scientific …)
3) This text is about … (deals with …, describes …, is devoted
to … touches upon the problems …)
4) I think it should be divided into 2, 3, 4, … logical parts.
5) The first one is about … (deals with …, describes …, is de-
voted to … touches upon the problems …)
6) The main idea of the text is …
7) I think …
25
What is the European Union?

The European Union - often known as the EU - is an economic and
political partnership involving 28 European countries. It began after
World War Two to foster economic co-operation, with the idea that
countries which trade together are more likely to avoid going to war
with each other.
It has since grown to become a "single market" allowing goods and
people to move around, basically as if the member states were one
country.
It has its own currency, the euro, which is used by 19 of the member
countries, its own parliament and it now sets rules in a wide range of
areas - including on the environment, transport, consumer rights and
even things such as mobile phone charges.
What is Brexit?
Brexit = Britain + exit
Text B
The Events around the 23 June 2016 Referendum
.
The United Kingdom European Union membership referendum,
known within the United Kingdom as the EU referendum and
the Brexit referendum took place on Thursday 23 June 2016 in the UK
and Gibraltar to gauge (оценить, выяснить) support for the country’s
continued membership in the European Union. The referen-
dum resulted in an overall vote to leave the EU, as opposed to remain-
ing an EU member, by 51.9% to 48.1%, respectively. The vote was
split between (голоса разделились между …) the constituent coun-
26
tries of the United Kingdom, with a majority in England and Wales

voting to leave, and a majority in Scotland and Northern Ireland, as
well as 96% of Gibraltar, voting to remain.
Membership of the EU and its predecessors was a topic of debate
in the United Kingdom before the country joined the European Eco-
nomic Community (EEC, or “Common Market”) in 1973.
Britain Stronger in Europe was the main group campaigning for the
UK to remain in the EU. Many other campaign groups, political par-
ties, businesses, trade unions, newspapers and prominent individu-
als were also involved. Those who favoured a British withdrawal from
the European Union – commonly referred to as Brexit.
Those who wanted to leave the EU argued that it would: allow
the UK to better control immigration, thus reducing pressure on public
services, housing and jobs; save billions of pounds in EU membership
fees; allow the UK to make its own trade deals; and free the UK from
EU regulations and bureaucracy that they saw as needless and costly.
Those who wanted to remain argued that leaving the EU would
risk the UK’s prosperity; diminish its influence over world affairs;
jeopardize national security by reducing access to common European
criminal databases; and result in trade barriers between the UK and
the EU. In particular, they argued that it would lead to job losses, de-
lays in investment into the UK and risks to business.
The referendum was precipitated by internal fighting within the
governing Conservative party, and the Prime Minister David Came-
ron stated he would resign as his side lost the referendum. The
Labour Party also faces a leadership challenge as a result of the EU
referendum. Scotland’s parliament may try to block the UK’s with-
drawal from the European Union.
Exercises
2. Find in the text the synonyms for the following words and
phrases:
to be held, to find out, discussion, to take part in, employment, use-
less, expensive, to risk, to be preceded by.
27
3. a) Study the meaning of the words and word combinations:

to favour, favourite, favourable, Please, do me a favour. To be in
favour of…, unfavourable, to lose favour.
b) Translate the phrases.
1) Большинство граждан Англии и Уэльса выступили за выход
из ЕС, а жители Шотландии и Северной Ирландии проголосо-
вали за членство в ЕС.
2) Пожалуйста, сделай мне одолжение.
3) Неблагоприятные погодные условия снизили урожай.
4) Бизнес круги в Великобритании проголосовали в пользу вы-
хода из ЕС.
5) Такие страны, как Польша, Латвия, Эстония и Литва имеют
более благоприятные условия от членства в ЕС чем промыш-
ленно развитые страны Западной Европы, так как получают
помощь от Евросоюза.
6) Это не входит в мои обязанности, просто я делаю тебе
одолжение.
7) Из-за проблемы с эмигрантами из Ближнего Востока член-
ство в ЕС утратило свою привлекательность.
8) Фильм получил благоприятный отзыв у критиков.
4. Comment the table. Use the following phrases:

This table presents the information about …
The information is arranged horizontally (or across) in rows, and
vertically (up and down) in columns.
The referendum was aimed at …
It took place … (date).
It was held in … (place).
… voters took part in the referendum.
According to the results …
28
United Kingdom European Union

membership referendum
Should the United Kingdom remain a member of the

European Union or leave the European Union?
Location United Kingdom and Gibraltar
Date 23 June 2016
Results
Votes %
Leave 17,410,742 51.89%
Remain 16,141,241 48.11%
Valid votes 33,551,983 99.92%
Invalid or blank votes 25,359 0.08%
Total votes 33,577,342 100.00%
Registered voters/turnout 46,501,241 72.21%
5. a) Using the information from the text fill in the table.

b) In pairs, have a conversation discussing advantages and dis-
advantages of EU membership. Use: On the one hand … on the
other hand …
To leave or to remain?
Arguments in favour of re- Arguments in favour of leav-
maining in the EU ing the EU
Text C
The US Economy
The United States is rich in natural resources, the main ones be-
ing iron, coal and oil. The nation produces more than 100 million tons
of iron a year. Four fifth of the ore mined in the country comes from
29
the Great Lakes region. Most of the coal mined is used by power sta-
tions to produce electricity. Coal is also used in the chemical indus-
tries for the manufacture of plastics and other synthetics. The produc-
tion, processing and marketing of such oil products as petrol (called
«gasoline» or «gas» in the USA) make up one of America’s largest
industries.
The basic metals and minerals mined in the United States are
zinc, copper, silver. Some of the main crops are wheat, maize, cotton,
tobacco and fruit. Cattle-breeding and pig-breeding are the most im-
portant branches of the US agriculture. To make farmers’ work more
productive scientific methods of farming are employed and modern
techniques of freezing, canning and packaging farm products are used.
The United States is a highly industrialized country with various
branches of heavy industry prevailing, namely, the mining, metallur-
gical, automobile and chemical industries as well as engineering and
computer technologies. Many branches of light industry are also de-
veloped; among them are the textile, food industries. Great emphasis
is made on the use of labor-saving machines. New industries are
created as new discoveries are made in physics, chemistry and other
sciences. Americans pay great attention to management training. The
leading US exports are industrial machinery, electronic equipment,
textiles, grain, iron, coal, oil products and chemicals.
Exercises
 2. Find in the text and write down all the words connected
with:
1) industry; 2) agriculture; 3) science.
3. Complete the sentences.

a) The United States of America is rich in natural resources such
as … b) The USA is a highly industrialized country with various
branches of heavy industry, namely … c) The leading exports are …
d) The main crops grown in the country are … e) In the USA they
breed …
30
 4. In pairs, discuss the state of the US economy and the reasons

for its success.
Key words for your dialogue:
The main branches, is rich in …, heavy (light) industry, in the
past few years, there is a tendency, a labor-saving machine, great ex-
penditures directed to the development of science, to make great em-
phasis on …, the leading exports.
Use the speech patterns: You see … (Видишь ли …); I’d like
to add smth. to your words. (Мне бы хотелось добавить к тому, что
Вы сейчас сказали); I’m afraid I don’t know. (Боюсь, я не знаю);
Looks like that. (Похоже на то); Is it true that …? (Верно ли …?)
 5. Retell the text.

Text C
Japan’s Economic System
Japan is a relatively small, but densely populated country. The

economic base of the country was largely destroyed at the end of the
World War II. Despite these handicaps, Japan has developed into one
of the world’s industrial superpowers. In fact, Japan’s standard of liv-
ing places that country among the four or five most prosperous nations
in the world.
The rapid economic growth has been achieved with an economic
system based on efficient economic planning. In fact, one of the truly
important characteristics of Japanese style planning has been its flex-
ibility.
The agricultural sector remains the only major sector protected
by high tariffs.
The relationship between firms and employees in Japan differs
from that in western economies. Japanese workers traditionally identi-
fy themselves closely with the firms that employ them. Firms subsid-
ize their employees’ purchases of medical care, housing and food.
Many Japanese workers spend their entire life within only one compa-
ny. Unemployment in Japan is very low (3 %).
In recent years the Japanese have demonstrated to the world that
one of the best ways to improve productivity is to improve product
31
quality. The nation has proved that «doing it right the first time» im-
proves product quality, lowers production costs and maintains their
competitive position in the market.
In a famous study in 1980, a manager of Hewlett Packard’s Data
Systems Division tested 300,000 computer chips from six manufac-
turers, three from Japan and three from the USA. The failure rate per
1000 was zero for the Japanese chips and between 11 and 19 for the
U.S. chips. After 1000 hours of use, the failure rate was two for 1000
Japanese chips and 27 for the U.S. chips. Is there any doubt that atten-
tion to «quality» has helped the Japanese enter and become a major
force in the computer chip market? The Japanese have had similar
successes in other industries.
Exercises
1. Scan the text.
2. Choose the main features that characterize Japan’s economic

system. Use the text to support your opinion.
a) product quality and social care;
b) effective economic planning and its flexibility;
c) protection of agricultural sector by high tariffs and competi-
tive position in the world market
3. Find and translate the paragraph about

a) product quality
b) agricultural sector
c) relationship between firms and employees
4. Name as many brands of Japanese products as you can.
32
WHAT IS QUALITY?
The quality of something is

how good or bad it is.
(a noun)
Quality means to be of a
high standard. (adj.)
David Garvin, a professor at the Harvard Business School, has

identified eight dimensions of quality.
Performance The quietness of a car‟s ride; the resistance of cos-

(показатели, metics to smudging; the clarity of the picture, sound
характеристики) and color of a TV set; low energy consumption of ap-
pliances; the sound from a stereo system
Features The colours, patterns and fabrics that are available in
(свойства, детали) furniture, towels, sheets, drapes, etc; the different
cycles and options available on washers, dryers, mi-
crowaves, refrigerators, etc; the adjustments availa-
ble on a stereo to improve the sound or on a camera
to allow for different types of shots, lenses and tripods
Reliability Dependability of a product or service to perform
(надежность) properly over time
Conformance How the product meets desired standards and toler-
(соответствие ances such as size, consistency of colour, etc. Does
требованиям, the product reach its customers on time?
стандартам)
Durability How long will a product last under various condi-
(прочность, tions?
долговечность )
Serviceability (исправ- The ease of repair or maintenance of a product
ность,
пригодность
к эксплуатации)
Aesthetics How product looks, tastes and smells. The design of a
(внешний вид) product is important.
Perceived The reputation of the product, its name and label.
Quality
(репутация фирмы)
33
 When you think of quality items, what brand names come to

mind? Why? In pairs, act out a conversation. Begin with:
«I need new watches (a mobile telephone, a car, a TV set, a pair
of walking shoes, etc)»
BE READY
 1. Make a report. Find and study extra material. Choose any

country in the world. Analyze different industries developed
there. While working answer the questions:
1) How do natural and climatic conditions influence the econo-

my?
2) What sector is more developed in the country, agrarian or in-
dustrial one?
3) What goods and services are provided by the country?
4) Who are the main trade partners (exporters and importers) of
the country?
5) What countries are competing with it and in what produce?
6) What is standard of living in the country?
7) What is GNP, incomes per head of population, national cur-
rency?
 2. Describe any product you like from the point of view of

quality items.
3. Find extra material and fill in the table. Comment it.
№ country GNP Standard employment export import

of living
1 USA
2 Gr Br
3 Germany
4 France
5 Japan
34
LESSON 3
Compare the words:

policy – police – political – politician – politics
Policy – 1) a set of plans or actions agreed on by a government, polit-

ical party, business or other group; 2) the government economic poli-
cy (verbs: to pursue, to operate, to implement).
Police – 1) the people who work for an organization that tries to catch
criminals and checks that people obey the law; 2) an organization that
tries to catch criminals and checks that people obey the law.
Politics [΄polətiks] – 1) the ideas and activities involved in getting
power in a country; 2) the profession of being a politician; 3) the
study how people gain and use political power.
Political – relating to politics, interested or involved in politics.
Politician – someone who has a job in politics.
Task 1. Use: «policy», «politics», «political», «politician», «police».

Foreign …; traffic …; … system; … economy; to talk about …; to en-
ter the … at age of 21; a … of rearmament.
Task 2. Translate the sentences.

1) What is the party’s policy on immigration? 2) We recognize
the importance of political stability. 3) He was a famous politician.
4) Let’s not talk about politics now. 5) Over 100 police were called in
to deal with the riot. 6) Someone called the police. 7) At the summit
the politicians discussed Soviet policy towards Afghanistan. 8) Every
organization supports their political leaders. 9) The new government is
expected to pursue a vigorous environmental policy.
Introduction Text
Russian Federation
The Russian Federation spans 48 oblasts, 17 million square ki-

lometers, and covers 11 time zones, stretching from the Baltic Sea to
the Pacific Ocean and the Arctic Circle to the steppes of Central Asia.
It has the population of about 150 000 000 people. The capital and the
35
largest business center is Moscow. Other major cities include St. Pe-
tersburg, Novosibirsk, Nizhniy Novgorod, Vladivostok, and Yekate-
rinburg.
The greater part of Russia’s territory is a vast plain with low
mountains ranges and long rivers. The country is rich in iron ore,
manganese, copper, zink, lead, natural gas and oil.
Although Russia is somewhat more stable than some other states
of the former Soviet Union, Russia is a very young country, and many
of the new laws and regulations established within its political and
economic institutions are extremely fragile. Laws are constantly
changing, and there are often big discrepancies between how things
are done in Moscow and on regional levels.
Since the breakup of the Soviet Union in 1991, living standards
have fallen significantly within the country. The Soviet Union broke
up into 15 independent countries known as the Newly Independent
States. Twelve of them entered into a union called the Commonwealth
of Independent States (CIS).
The system of central supply and distribution ended. Also prob-
lems in downstream agricultural activities – transportation, storage
and processing – had a negative effect. Another problem was the wea-
kening of the power of the national currency. The result was severe in-
flationary pressure. However, state prices for most consumer goods
including foods, remained controlled at below market-clearing levels.
That produced excess demand. The result was all signs of consumer
shortages – longer lines for goods, hoarding, barter, and the growth of
black markets. Many factories and farms failed to receive the inputs
necessary to maintain previous production levels. Real GNP fell. The
whole economic system was to be radically reformed.
Exercises
1. Scan the text.
2. Which of the statements do not render information of the text?

a) The Russian Republic had to begin an important program of
economic reform.
b) In Russia most natural resources are concentrated in inaccess-
ible areas and costly to extract.
36
c) It is difficult to regulate economy in such a vast country like

Russia.
d) Foodstuffs and other goods were available, but higher prices
were severely stretching people’s pocketbooks.
e) Russia’s stronger growth performance is due in large part to
two factors: the real devaluation and high energy prices.
f) A lot of farms were making a loss.
3. Develop the idea.

a) Russia is rich in natural resources, such as …
b) Natural and climatic conditions make it possible to develop
agricultural production, because …
c) Russia is a young country that is why its economy …
d) Severe inflation was due to the fact that …
e) Excess in demand was because …
f) A lot of enterprises faced bankruptcy because …
4. In groups, speak on the problems stressed in the text. Which

basic problems of the economy were (are) to be solved?
Use the speech patterns: Yes, certainly. – Да, конечно.
Exactly. – Именно.
Right you are. – Ты прав.
Most likely. – Весьма вероятно.
To a certain extent … – До некото-
рой степени
I’m of the same (another) opinion. –
Я того же (другого) мнения.
I don’t agree with you. – Я не со-
гласен с вами.
Not at all. – Отнюдь нет.
Far from it. – Далеко не так.
37
Grammar Revision
degrees of comparison
1. Give the degrees of comparison of the following adjectives and

adverbs.
Short, tall, large, nice, long, big, profitable, feasible, high, pro-
ductive, fertile, active, fast, easy, good, bad, few, busy, near, far, old,
permanent, competitive, late, thin, comfortable, prosperous, resistant,
tolerant.
2. Put the adjectives and adverbs in the proper form.

1) The central regions of our country are (industrialized) than
northern parts.
2) Living conditions in some Latin American countries are (bad)
than in developing Asian countries.
3) It was (easy) to make a decision than economists thought.
4) This is (important) stage in the processing of the product.
5) Nowadays mining plants use (many) modern machines than
ten years ago.
6) Bananas require (hot) climate for growth than potatoes.
7) This is (costly) method of production.
8) Sometimes the work of a farmer is (difficult) than that of an
industrial worker.
9) Food, clothes, and shelter are (necessary) things for man’s life.
10) Angola is known as a (little) developed country.
11) Consumers were interested in (cheap) goods of (high) quality.
12) In vast countries central authorities have (little) information
about remote districts than in small countries.
3. Translate the sentences with: «a bit,» «a little,» «much,» «far,»

«a lot».
1) Let’s go by car. It is much cheaper. 2) Don’t go by train. It’s much
more expensive. 3) Ann works a lot harder than most of her friends. 4)
Could you speak a bit more slowly? 5) His business losses were far
more serious than at first thought.
38
comparative constructions
4. Make up sentences and translate them.
The sooner … … the more independent it on the

The warmer the weather, … world market.
The more goods you sell, … … the higher the demand.
The lower the price, … … the better.
The more expensive the hotel, … … the better I feel.
The deeper I study Keynes’ theory, … … the more I realize the importance of
The more mineral resources a country government role.
has got, … … the better the service.
… the more profit you’ll make.
5. Rewrite the following sentences changing as … as, into not so as.
1) She is as young as you are. – You’re mistaken. She …
2) I am as tired as you are. – Nothing of the kind. You …
3) Great Britain is as prosperous as Japan. – I don’t think so.
Great Britain …
4) To produce and export farm products is as profitable as to ex-
port electronic equipment. – I’m of another opinion. To export …
5) My office is as light as yours. – On the contrary. My office …
Word-building
1. Define the part of speech of the following words. Pay special
attention to the degrees of comparisons.
Factor, goods, consumer, better, depending, direction, the larg-
est, greater, completely, supplier, more lucrative, easier, sold, affect-
ing, lower, previously, farmer, cultivation, able, to offer, quantity, the
highest, high, higher, she changes, a lot of changes, changeable.
2. Complete the following sentences using adjectives or adverbs.

Model: to buy something (cheap/cheaply) – to buy something
cheaply
1) This is a (comparative/comparatively, easy/easily) book to
read and translate. 2) (Total/totally) car production is not always
(easy/easily) to estimate (general/generally). 3) Even some (com-
mon/commonly) tools of (economic/economically) analysis are not
(general/generally) known. 4) Some macroeconomic analysis offer
(extreme/extremely) detailed treatment (individual/individually) deci-
39
sions. 5) If we compare the markets for cars and bicycles (care-

ful/carefully), we may be able to offer a (good/well) explanation for
their prices.
average annual production – среднегодовое производство

barren – пустой, голый
barter – бартер
break up – разбиваться, распадаться
budget deficit – дефицит бюджета
cause – 1) причина; 2) вызывать
central supply – централизованные поставки
circular flow – циркулирующий поток (товаров, вложений
и т. д.)
competitive price – конкурентоспособная цена
cost of living – прожиточный минимум
down stream – упадок, движение вниз
draw into competition – вовлекать в конкуренцию
effort – усилие, попытка
emerge – 1) возникновение; 2) возникнуть
entrepreneurship – предпринимательство
equitable – справедливый
face bankruptcy – быть на пороге банкротства
fail – провалить, не удаваться
fiscal policy – бюджетно-налоговая политика
free – 1) свободный; 2) освобождать
free enterprise – свободное предпринимательство
give a boost – дать толчок
hoarding – припрятывание (товаров)
impose sanctions – вводить санкции
incentive – стимул
input – капиталовложение
liberalization – либерализация
line – линия, поток, очередь
long run – долгосрочный
meet the demands of smb. – удовлетворять потребности
mode of exchange – способ обмена
40
money income – денежный доход

national currency – национальная валюта
performance – функционирование, показатель
private property – частная собственность
privatization – приватизация
purchasing power – покупательная способность
revert – обратиться (во что-либо)
severe – суровый
shelf – полка, прилавок
sluggish – застойный
small business – малый бизнес
tend – иметь тенденцию
threaten – угрожать
unemployment benefits – пособие по безработице
voluntary exchange – добровольный обмен
Exercises
1. Match the verbs from (A) with the nouns from (B).
to cause A the demands of people B

to draw into inflation
to face hoarding and barter
to free business
to cut free enterprise
to approve prices
to meet expenditures

1) A market economy is called a free enterprise system or capi-
talism. 2) Voluntary exchange could be defined as the primary means
of organizing and coordinating production. 3) The situation on the
farm threatens to face bankruptcy. 4) Oil prices tend to increase.
5) The country has to cope with sluggish economic growth. 6) Nina
receives unemployment benefits, but she is promised to give a job.
7) The pillars of free enterprise are private property, the price system,
market competition, and entrepreneurship. 8) The rights to own and
41
exchange property and to make a profit give individuals and business-

es incentives to use their resources wisely. 9) Entrepreneurship is the
willingness and ability to see opportunities and to develop them into
new products for the market. 10) Economists use a circular flow mod-
el to highlight (освещать, выдвигать на первый план) basic ele-
ments of a market economy. 11) The Soviet Union broke up in 1991
and the system of central supply ended. 12) A lot of enterprises failed
to receive funds necessary to maintain necessary levels of production.
13) Ruble is the national currency in Russia. 14) Purchasing power is
the ability of people to buy goods and services. 15) In a barter system
a product would have as many different prices as there are other prod-
ucts that could be changed for it.
3. Choose the letter of the item that best completes the statement
or answers the question.
1) Most businesses earn their profit by
a. competing successfully against consumers.
b. charging higher prices.
c. selling what consumers want to buy at prices they are willing
to pay.
d. ignoring consumers’ preferences.
2) Lots of businesses work together as a team to provide you
with products like bread and peanut butter. For the most part, busi-
nesses do this because they are guided by
a. voluntary exchange.
b. the government.
c. the banking system.
d. the stock market.
3) When resources are privately owned,
a. people have incentives to use them carefully and productively.
b. people typically ignore the opportunity and benefits of using
the resources.
c. both of the above.
d. none of the above.
4) In a market economy prices provide information. This means
that prices
a. usually tell businesses about the values consumers put on var-
ious products.
42
b. often lets households know which products businesses want to

buy.
c. tell the government which products it should allow businesses
to produce.
d. clearly identify products that are not scarce.
5) Competition can take many forms, but there would be no
competition at all without
a. money.
b. markets.
c. scarcity.
d. businesses.
4. Complete the sentences using the words from the box. Trans-
late them.
1) In 1992 the … situation in Russia … difficult.
2) Large macroeconomic imbalances … in the initial stages of
… to a … economy.
3) Nevertheless, … progress was achieved in implementing
structural adjustment … in some areas.
4) Real … and industrial … are estimated to have dropped by
19 % in 1992.
5) Inflation … began to decline after the jump in … .
prices, arose, economic, significant, market, the transition to, GNP, rates,
policies, continued to be, output
5. In pairs, develop the discussion and complete the dialogue.

– You know, the ups and downs in the economy remind me of
one of those good news/bad news stories.
– What do you mean?
– Well, think of what happens during periods of expansion. The
good news is that there are plenty of jobs around, so anyone looking
for work can probably find it.
– So, what’s the bad news?
– Well, if you happen to be an employer, qualified workers be-
come hard to find.
– Right.
43
– But the good news is that since workers are scarce, wages tend
to increase.
– I can live with that.
– Yeah, but the bad news is that as wages increase, so does the
price of everything else.
– Inflation time?
– That’s what they call it, but the good news is …
Reading
Text A
Russian Economy during the 90-s
The Russian Federation is the largest country in the world cover-

ing 12,7 % of the world land territory.
Its share in the Total World Output is 1,1–2,4 % (1998). The
Russian Federation evolved from the USSR as the country broke up in
1991. So, the whole economic mechanism came to imbalance.
In 1992 the economic situation in the country continued to be
very difficult. The nation suffered from economic decline and social
hazards. Real GNP and industrial production are estimated to have
dropped by 19 % in 1992. Oil extraction fell by 15 %, while the output
of natural gas remained unchanged; agricultural output fell by 8 %.
Real incomes dropped leading to the drop in the total demand. The
breakdown of the monetary system had led to the weakening of the
power of the national currency as effective money. Nobody wanted to
sell goods for rubles. A great number of factories and farms failed to
receive inputs needed to maintain production levels. In January 1992
the Russian government began an important program of economic
reform. Its long-run goal was to create the institutional conditions for
a market oriented economy. The key policies to do that were privatiza-
tion of enterprises and private ownership of farmland.
Two policy moves were necessary to restore macroeconomic
balance:
 The government was to prevent the further growth of infla-
tionary pressure. That required reducing both the budget deficit and
the growth of the money supply. The Russian program promised
44
tough budget, money and credit policies. These policies, though re-
duced the funds available to producing enterprises, and thereby threat-
ened firms with bankruptcy, and workers with loss of their jobs. The
government faced a difficult choice between reducing inflation and
protecting enterprises and employment.
 In a second policy move the state had to mop up the existing
«stock» of surplus rubbles. Prices were completely freed for many
products and consumer goods (including clothes, most foods such as
meat and sugar). The price liberalization changed the nature of the
food problem for Russian consumers.
The tough monetary policy made it possible to curb the inflation,
to stabilize the ruble, and to restructure the country’s external debt.
Enterprises seemed to be adapting to the new conditions. A boost was
given to such industries as ferrous and non-ferrous metal industries,
and the fuel and energy complex resulting in export increase.
The large-scale privatization has brought about private owner-
ship which has caused the appearance of private property, the setting
up of privately-owned businesses and the development of the non-
state sector. Of course, the emerging business needed support in the
form of programs to support entrepreneurship. A number of federal
programs began to support small businesses and enterprises providing
tax benefits, information support and training of personnel to them.
So, the massive shift Russia is making now from a command to
a market economy is really unprecedented [Λn'presi,dentid]. Liberali-
zation of economy, restructuring of production sectors, an extensive
privatization program have brought about real changes and to the crea-
tion of types of business unit accepted throughout the world.
Economic security of large nations, like Russia, can be main-
tained because of its smaller dependence on world markets. In spite of
all handicaps, Russia is developing, it is provided with such economic
fundamentals as natural resources, good agricultural land, forests,
fresh water, etc. It has got the greatest scientific and industrial poten-
tial. Self-sufficiency can be ensured by well-thought government poli-
cies.
45
Exercises
2. Find English equivalents for the following words and word

combinations:
распался, страдала от экономического упадка и социальных
потрясений, добыча нефти, выпуск сельскохозяйственной про-
дукции, ослабление покупательной способности национальной
валюты, ключевые политические решения, зажим инфляции, же-
сткая бюджетная политика, покончить, программы по поддержке
предпринимательства, льготное налогообложение, подготовка и
обучение кадров, не смотря на все потрясения, самодостаточ-
ность.
3. Find in the text the words which mean the following:

a) To control or limit something that is harmful is to …
b) An amount of money that you owe is …
c) An action or event that helps something to increase, improve
or become more successful is …
d) Never having happened or existed before is …
e) Paper money used in a country is …
f) The turn over of some public sector production activities into
the private sector is …
4. Correct the plan to the text.

I. Real Incomes and Monetary System
II. Privatization
III. GNP
IV. Economic Reform and Two Policy Moves
V. New Russia
5. Answer the questions.

1) What happened in the country in 1991?
2) What problems did Russia have to deal with in 1992?
3) When did the government begin a program of economic reform?
4) What was its long-run goal?
5) What were the key policies of the reform?
46
6) What were the policy moves?

7) What was the measure to control inflation?
8) What was the result of privatization?
9) How can economic security of the country be maintained?
6. Comment on the table.
problem result way of solution

drop in total demand
1 economic imbalance economic reform
and social hazards
weakening of the
tough budget and
2 power of national inflation
monetary policy
currency
3 consumer shortages surplus rubbles price liberalization
total industrial de- privatization of en-
4 bankruptcy
cline terprises
 7. Prepare a retelling of the text.
Dialogue
Foreigner: Could you give me a general idea of budget organi-
zation and budget process in the Russian Federation?
Russian: Certainly. First of all, by the budget organization we
mean the structure of our budget system and its major components.
Foreigner: I suppose there is a close link between the budget or-
ganization and your state system, isn’t there?
Russian: Yes, there is. Being a federal state we have the federal
budget, regional budgets, or budgets of the subjects of the Federation,
and local budgets.
Foreigner: I see. I know that in the past you used to have a sin-
gle budget including the federal and local budgets, didn’t you?
Russian: Yes, that’s true. But now the situation has changed.
Our regional and local authorities have been given considerable budg-
et autonomy now.
47
Foreigner: Do you mean to say that some of expenditure respon-

sibilities have been handed down from the federal government to the
regional ones?
Russian: Exactly.
Foreigner: I’m clear now. And how is the budget process ar-
ranged?
Russian: This process includes all activities of government bo-
dies on formulation, consideration, approval and execution of the
budget.
Foreigner: What governing bodies are involved in this process?
Russian: Well. The executive branch is responsible for the prep-
aration and execution of the budget; budget consideration and approv-
al is the responsibility of the legislative branch and the Accounts
Chamber controls the execution.
Exercises
1. In pairs, act out and translate the dialogue.
2. Comment on the scheme.
Executive body is responsible for … Legislative body is responsible for …
3. Explain the meaning of the phrases:

1) To formulate the budget means …
2) Autonomy means …
48
3) Consideration of the budget means …

4) To approve the budget is …
Text B
Проблема России
Главная беда экономики России – нехватка денег у населе-

ния на самое необходимое, что разрушает балансе между ценами
на продукцию разных отраслей и на оплату труда. Мировая прак-
тика давно установила примерный баланс цен на различную про-
дукцию, который определяется затратами. К примеру, в США це-
на одного килограмма хлеба равна двум долларам или стоимости
четырех литров бензина. У нас – наоборот. Килограмм хлеба де-
шевле литра бензина.
Получается, что наш экономический порядок ущемляет тех,
кто производит хлеб (крестьян, работников зернохранилищ, пе-
карен и т.д.). То же самое происходит и по отношению к «молоч-
никам» и «мясникам». В выигрыше оказываются работники неф-
тедобывающих и нефтеперерабатывающих предприятий (а точ-
нее, их владельцы), в большей степени ориентированные на экс-
порт своей продукции. Изначально преимущество дается тем, кто
работает не на свое население, а на удовлетворение чужих по-
требностей за счет наших природных ресурсов. В результате у
нас не работает главный двигатель экономики – покупательский
спрос.
Exercises
1. Translate the text using a dictionary.
2. Do you agree with the author? Can you add anything?
3. What should be the price for 1 lt of petrol if 1 kg of bread costs

10 rubbles? What should be the price for 1 kg of bread if 1 lt of
petrol costs 15 rubbles?
49
Text С
Russian Economy and Political Situation in the World
Russia is a vast country. Its economic security can be maintained

due to its smaller dependence on world markets. With largest natural
gas and second largest oil resources in the world Economy of Rus-
sia has already attracted billions of dollars of foreign invest-
ments. This country is the 8th largest economy in the world today.
And this ranking is continuously progressing. Russia is provided with
such economic fundamentals as natural resources (oil, gas, metals,
coal, wood, fresh water), good agricultural land, labour resources.
1
At present the economic situation is influenced by political
events. The world is changing. In 2014 the political situation in the
Ukraine radically changed. Ukrainian crisis began in 21 November
2013: President Yanukovitch backed out of signing the Association
Agreement with the EU, accepted $15bn loan from Russia. In No-
vember 2013 protests broke out in Kiev, in 20 February 2014: large-
scale clashes between police and protesters took place. On the 21st of
February 2014 Peace agreement was signed between opposition lead-
ers and Yanukovitch, and also signed by Foreign Affairs ministers of
Germany and Poland. On the 22nd of February 2014 radical opposition
leaders refused to recognize the peace agreement and made Yanuko-
vitch leave Kiev. On the 23d of February 2014 Turchinov proclaimed
enacted President of Ukraine. On February 2014: Law granting Rus-
sian the regional status language was abolished. It resulted in the Cri-
mean parliament decision to declare independence in Crimea. On the
16th of March 2014: people’s referendum on independence took place.
The results of the referendum was the following: President Putin
signed a decree on Crimea re-joining Russia.
Western European countries and the USA imposed sanctions on
Russian Federation.
The United States and European Union imposed trade sanctions on
Russia in 2014. That targeted the pocketbooks of the coun-
try's oligarchs. As a result, they've sent $75 billion out of the country,
or 4% of the country's entire economic output as measured by GDP.
50
2
• First Round:
– Immediately after March 16, 2014 following on Crimea’s joining
Russia
– Target: individuals banned from visiting EU, Canada, the US;
doing business is also prohibited with them
• Second Round:
– April 28, 2014
– Further visa bans, 17 Russian companies
• Third Round:
– July 17, 2014: Malaysian MH17 crash
– Government-owned Russian banks, trade restrictions on defense
industry, additional visa bans
– Inability to borrow for more than 30 days
3
Depreciation increased by 23% (RUB/USD), and by14%
(RUB/EUR)
Most depreciation occurred after the third (sector) round of sanc-
tions
Capital flight occurred due to increased geopolitical uncertainty
Exports did not grow proportionately to ruble’s depreciation due to
global economic slowdown. Ability to borrow abroad restricted by
sanctions, limiting supply of foreign currency
Inflation picked up significantly shortly after the first round of
sanctions. Inflation rate kept roughly at or below the similar infla-
tion level of 2008, the year of the global crisis
• January – September 2014: 6.27%
• January – September 2008: 10.57%; January-September 2013:
4.72%
4
As a response to the sanctions Russia imposed food imports ban
from the EU, US, Canada and Australia in August 2014. It was as-
sumed that having lost the Russian market, countries which agricul-
tural products were banned would not be able to find other markets
and would suffer losses. Poland, Finland, Lithuania are most affected
51
by the Russian food ban. The main task was to develop domestic in-
dustries and agriculture in order to fulfill import substitution.
5
Russia supplies 30% of Europe’s oil and 24% of its natural gas.
The budget crucially depends on the oil-gas revenues. Rising energy
prices increase oil-gas revenue component of the Russian budget
without any growth in the physical volumes. In 2014 the oil price of
USD $50 per barrel was perceived as an inevitable disaster, but in
2015 these values would be a dream come true. The oil price hit a new
low on 6 January 2016, reaching the 11-year bottom of US $33 per
barrel. In response, Russian ruble immediately hit the record level of
75 ruble per USD.
On the other hand, EU depends on about 1/3 of its energy con-
sumption on imports from Russia:
 34% crude oil
 26% solid fuels (mainly coal)
 32% natural gas.
Germany, Italy, and Eastern European countries are the most vul-
nerable importers.
6
According to the Ministry of Economical Development, Russia’s
GDP came down by 3.8% in 2015, and unemployment increased by
nearly 11%. Many people including pensioners live on fixed income,
which doesn’t give much liberty for adjustments. The largest part of
regular citizens’ income is spent on food, the sector where prices sky-
rocketed in 2015. Sanctions against Russia didn’t incite local econom-
ic growth, as some economists predicted. The growth in prices was
accompanied by decrease in quality of available goods and products.
The attempt to replace certain food groups by produce of the local
suppliers so far has been failing, with great numbers of importers
creating schemes to bring European cargo through Belarus, trying to
bypass the regulations. Officially 12% of Russians or 18 million
people live below poverty level, the worst result in 11 years.
7
“In spite of the difficult economic situation, Russians remain
calm, because they believe in the stability of the state and "floodabili-
52
ty" of the Russian economy, German financial analyst Matthias Siller

said in an interview with “Finanz und Wirtschaft”. Since Russia ma-
naged to achieve a high degree of self-sufficiency, the threat of infla-
tion and bank failures is very low.
Russia no longer needs foreign investment because it already has
sufficient fixed capital. The country will rather move further and
manufacture its own products, the expert stated, adding that Russia
still has great potential "in the field of food production".
Exercises
1. Scan the text.
2. Choose the titles to the paragraphs 1-7.

 Social problems
 Ruble depreciation
 Viability of the economy
 Oil and gas in the Russian economy
 Crisis in the Ukraine and its impact on the Russian economy
 Sanctions: history
 Russia’s food imports ban
3. Find the information about:

a) EU dependence on Russian energy supplies
b) Independence of Crimea
c) Price changes
d) Russia’s food imports ban
4. Put the events in chronological sequence.

 Crimean people declared independence.
 Yanukovitch left Kiev.
 The new government in the Ukraine abolished the law grant-
ing Russian the regional status language.
 Russia imposed food imports ban from some countries.
 Western European countries and the USA imposed sanctions
on the Russian Federation.
 Protests broke out in Kiev.
53
 Inflation picked up significantly in the country.

 President Putin signed a decree on Crimea re-joining Russia.
5. Fill in the table and develop the idea. Use the model below.
reason/condition event/fact result

Russia is provided With largest natural Russia is the 8th
with such economic gas and second larg- largest economy in
fundamentals as natu- est oil resources in the world today.
ral resources (oil, gas, the world Economy
metals, coal, wood, of Russia has already
fresh water), good attracted billions of
agricultural land, la- dollars of foreign in-
bour resources. vestments.
President Yanuko- … …
vitch backed out of
signing the Associa-
tion Agreement with
the EU
In the Ukraine the … …
law granting Russian
the regional status
language was ab-
olished.
President Putin signs … …
a decree on Crimea
re-joining Russia
The United States and … …

European Union im-
posed trade sanctions
on Russia
Model: Russia is provided with such economic fundamentals as natu-

ral resources (oil, gas, metals, coal, wood, fresh water), good agricul-
tural land, labour resources. So, with the largest natural gas and
54
second largest oil resources in the world the economy of Russia has
already attracted billions of dollars of foreign investments. The result
is Russia is the 8th largest economy in the world today.
BE READY
1. Explain the meaning of the terms:

Price liberalization, inflation, a budget, bankruptcy, output, in-
put.
 2. Write a composition. Choose the topic:

1) How I see Russian economy in future.
2) Positive and negative features of economic changes in Russia.
55
LESSON 4

Compare the words:
to tax – taxation – taxability – taxable – tax-free – taxpayer
To tax means to get money for public services and other government
institutions by putting a tax on something (to put a tax on smth.)
Taxation – the system that a government uses for collecting money
from people in the form of taxes.
Taxability – ability to pay taxes.
Taxable – something you have to pay tax on.
Tax-free – if something is tax-free, you do not pay tax on it.
Taxpayer – someone who pays taxes on smth.
Task 1. Match the word combinations with their translation.
liable to a tax подоходный налог

tax on income подлежащий налогообложению
to collect taxes обложить налогом
to impose a tax собирать налоги
rate of tax льготное налогообложение
concession taxation размер налога
tax-free goods товары, не облагаемые пошли-
ной
Task 2. Translate the sentences.

1) Government plans to tax private schools. 2) Childcare for
working mothers should not be taxed. 3) Reducing taxation further
could have disastrous economic consequences. 4) You should settle
down the question about your taxability in due time. 5) I’d like to buy
some tax free perfume in the airport. 6) Taxpayers must know how
their money is used.
Introduction Text
Government and Economy
People debate the proper role and size of government in a market
economy. But government has a potential role to play because market
often falls short in the following tasks:
56
– Establishing and enforcing private property rights and the

law.
– Dealing with external costs and benefits.
– Protecting consumers.
– Stabilizing the economy.
– Promoting economic security.
– Providing public goods and services.
Government may step in to overcome these problems. It enforces
contracts and property rights. It establishes procedures for dealing
with external costs, such as pollution and external benefits, such as
public health. It can try to promote market competition, and it can
provide public goods, such as national defense. Finally, government
can act to promote the economic security of some citizens, and it can
stabilize the economy.
Market decisions are dictated by interaction of business and con-
sumers. These different motivations often result in conflict between
decision makers in the private and public sector.
The federal government spends money on direct benefits to indi-
viduals, national defense, interest and grants. It receives money from
personal income taxes, social insurance taxes, corporate income taxes,
and miscellaneous taxes like excise (sales) taxes.
Taxes can be enacted according to the benefits-received or the
ability-to-pay principles.
Regional and local governments also receive and spend money.
The relative importance of the various federal taxes has changed over
the years.
Exercises
1. Scan the text.
2. Choose the correct variant.

1) This text is about
a) rate of taxes; b) role of the government; c) relationship be-
tween market and government
2) Government’s sources of revenue are:
a) social grants; b) federal budget; c) taxes
3) People
57
a) think that government shouldn’t interfere with market; b)

think that government role is very important; c) debate the proper role
and size of government in a market economy.
3. Answer the questions.

1. What are the tasks to be fulfilled by the government?
2. Which external costs and benefits can be promote by the gov-
ernment?
3. Where does government take money?
4. How are market decisions dictated?
4. Study the table. What information does it provide? Comment

on it.
The most important government revenues
taxes
direct taxes indirect taxes
on income on capital on commodities on services
Grammar revision
Simple Tenses
1. Use the Present Simple tense.

1) The plant (to produce) many different machines for farmers.
2) Consumers (to pay) for some extra services, such as medicine, edu-
cation, transport. 3) Government decisions (to affect) the economy.
4) Regional and local governments also (to receive) and spend money.
5) In modern economies taxes (to be) the most important source of
government revenues. 6) Today American economic system (not to
be) the same as it was in the 19th century.
2. Use the Past Simple tense.

1) Smith (to accept) the idea of government participation in the
economy. 2) Earlier government leaders (to refuse) to do anything to
control business. 3) In the 19th century the government (not to take)
big role in business affairs. 4) Workers (to get) together to organize
58
unions to protect themselves. 5) Gradually, the government (to begin)

to take action. 6) The prices for the services (not to be) high at that
time. 7) The economist prediction (to be) correct.

3. Use the Future Simple tense.
1) I don’t think this company (to produce) good computers. 2) If
you speak English you (to get) a better job. 3) Next year taxes (to be)
higher. 4) I’m sure local government (not to interfere) in this situation.
5) Certainly, Congress (to approve) this project. 6) We hope you (to
earn) enough money for living.
4. Use the appropriate tense form.

1) When we (to finish) work, we (to go) home. 2) If it (to get)
warmer, we (to go) to the river. 3) After they (to buy) new equipment,
they (to teach) their workers to work with it. 4) If the country (to in-
vest) more money in education, productivity and living standards (to
be) higher. 5) If the government policy (to be) proper, employment (to
be) higher. 6) If Russia (to improve) conditions of scientists’ work,
there (to be) great progress in science. 7) Before the manager (to
make) a decision, he (to study) all the data. 8) If the economists (not to
use) the new method of analysis, they (not to make) a correct model.

5. Make the sentences interrogative (general and special ques-
tions) and negative.
1) In 1890, Congress passed a Sherman Anti-Trust act to break
up monopolies. 2) In future government role in a market economy will
decrease significantly. 3) The table compares government economic
activities in the USA to those of the Russian Federation. 4) There is
too much government regulation. 5) The biggest changes came in the
1930s. 6) Government provides social services. 7) Lower incentives to
work will result in social crisis.
to be going to

1) The student is going to study both English and French. 2) I am
going to write new words in my notebook and learn them. 3) My
mother is going to work as an economist. 4) My friend is not going to
59
take computer course this winter. 5) Government is going to control

farm sector more thoroughly.
Word-building
1. Give derivatives of:
national, importance, functional, independent, governor, executive,
maintenance, deposition, progressive, stability, tendency.
2. Use different suffixes and prefixes to derive new words.

e. g. to produce – produce – production – productive – unproduc-
tive – productivity – producer – reproduction – overproduction
an implement –
policy –
a tax –
to abolish –
to appoint –
responsible –
profit –
able –
ability-to-pay principle – принцип учета платежеспособности

affect – действовать, влиять, затрагивать
allocate – размещать
benefits-received principle – принцип взимания налогов с уче-
том размера индивидуальных доходов
borrow – занимать (деньги, и т д.)
citizen – гражданин
complementary – дополнительный
correctional facilities – исправительные учреждения
create – создавать
deficiency – нехватка
define – определять
dispute – оспаривать, противиться, спорить
equitable – справедливый, беспристрастный
establish – основывать, устанавливать, доказать
excise tax – акцизный сбор
60
experience – опыт, испытывать

experience deficits – испытывать дефицит
external costs – внешние издержки
failure – неудача, провал, ошибка
fall (fell, fallen) short – испытывать трудности, не удаваться
grant – грант
national defense – национальная оборона
overcome (overcame, overcome) – преодолеть
policymaker – политик
property right – право собственности
public choice theory – теория общественного выбора
public goods – товары общественного назначения
rate of tax – размер налога
relative to – относительно, относящийся
result in – приводить к чему-либо
revenue – годовой доход (правительства)
security – безопасность
social insurance tax – налог в фонд социального страхования
solvency – платежеспособность
tend to – иметь тенденцию
Exercises
1. Match the Russian word combinations with the English ones.

tax on income покрыть дефицит
to collect taxes стимулирование спроса
to file a tax осуществить
to come into effect подоходный налог
to effect payment заполнить налоговую декларацию
to bring into effect государственное обеспечение
defense establishment собирать налоги
to establish banking relations вступить в силу
to provide with funds осуществить платеж
provision for old установить отношения с банком
public provision фонд обеспечения престарелых
demand promotion военно-промышленный комплекс
to cover deficit предоставлять средства
61
2. Translate the words without a dictionary. Read them correctly.

Principle, deficit, regulation, stabilization, personal, individual,
interaction, federal, constant, social security, private, motivations,
public sector, regional, local, business, market, budget, act, invest-
ment.
3. Arrange the letters in brackets into definitions of given state-

ments.
a) A financial plan that summarizes expected income and ex-
penses for the coming year (tegbdu).
b) The cumulative sum of all borrowing that is necessary to be
paid off (bted).
c) The principle source of income to state and local governments
(xta).
d) Something controlled or owned by individual people, rather
than by government (vateirp yporpetr).

1) To carry out its allocation, distribution, and stabilization roles
government must budget its revenues among competing uses. 2) Prop-
erty rights are well defined when markets function successfully. 3)
Rate of tax is established according to a great number of factors. 4)
Without help of government market often falls short in a lot of tasks,
such as dealing with external costs and benefits, protecting property
rights, providing public goods and services and many others. 5) The
majority of government revenues come from taxes. 6) The distribution
of income should be equitable. 7) National defense questions received
more attention last year.
Dialogue

– You see, most Americans would agree that government has
an important role to play in the economy.
– But nevertheless, there is considerable disagreement as to
how active this role should be.
– Will you stick to the point?
62
– Of course. In 1984 the nation’s seventh largest bank Conti-

nental Illinois of Chicago faced bankruptcy. Under the circumstances,
the Reagan Administration decided to save Continental Illinois. It did
this by investing $4.5 billion in the bank and promising to invest
more.
– It was a wise decision, I believe. Government leaders feared
that if bankruptcy were to occur, public confidence in the banking sys-
tem might also fail. Moreover, if I remember rightly, in this particular
case, in exchange the government was to receive 80 percent of Conti-
nental Illinois’ stock.
– In other words, government purchased a private organization
such as Continental Illinois. It was, no doubt, contrary to the spirit of
American free enterprise.
– I can’t agree with you. Continental troubles threatened the
economy as a whole. For that reason, the government was obliged to
help Continental.
– You’re right to a certain extent. But this government action
was unfair to the firm’s competitors who had to make it on their own
(вынуждены были сами справляться с трудностями).
– It’s difficult to argue.
Exercises
1. In pairs, act out and translate the dialogue.
2. Find in the dialogue English equivalents for the following

phrases:
Видишь ли…; Нельзя ли конкретнее?; Конечно; стоял на
пороге банкротства; при сложившихся обстоятельствах; Это было
мудрое решение; Насколько я помню…; Другими словами, …;
Это, без сомнения, противоречило духу…; Не могу с тобой со-
гласиться; С этим трудно поспорить.
3. Identify and explain the reasons why there is much debate

about government’s role in the economy.
4. With which point of view would you agree? Explain your posi-
tion.
63
Reading
Text A
Economic Role of Government
Since markets function properly when property rights are well

defined, one very important function of the government is to set these
basic «rules of the game».
Besides its legal function of defining and protecting property
rights what else should the government do? Another important func-
tion of the government is to correct the failures of private markets that
result from monopoly or the existence of public goods and externali-
ties government is also asked to address macroeconomics problems
such as inflation, unemployment, and low economic growth.
But it is not certain that the government’s intervention in mar-
kets to allocate resources, to redistribute income, and to stabilize ag-
gregate of economic variables (like employment) will always lead to
better results. Public choice theory assumes that government efforts
sometimes do not improve market outcomes.
While government plays a somewhat secondary role in market
oriented economies, that role is still extremely important.
The first government’s function is to decide who can own re-
sources and define what rights go with ownership. A complementary
function is to create a legal structure of courts and police, to enforce
rights when disputes arise. The history of earlier civilizations, or even
in American West in the 1800s, illustrates the problems that arise with
systems of rights in which people own only that which they can pro-
tect. Using brute strength to enforce property rights is costly, however,
because it forces everyone to be a part-time policeman, judge and
jury. Thus, a major part of government role at all levels, from local to
national, is to define property rights (legislated, civil, and criminal
laws); to create instruments to recognize and establish ownership (la-
bour and business contracts, deeds to land, automobile titles); and to
set up legal systems (police, courts, and correctional facilities) in order
to clarify, refine and enforce property rights.
In its allocation function, government tries to assist markets
when they fail, or to replace them, in order to assure that resources are
allocated efficiently. Government allocation activities include:
64
 limiting private monopoly and regulating natural monopolies;

 regulating, taxing and subsidizing firms and individuals to
internalize externalities;
 providing public goods such as national defense, navigation
aids and preventing the spread of communicable diseases.
The next function of government is distribution. Many people
believe that the market determined distribution of income is unfair.
They call upon government to modify that distribution. Changing the
market-determined distribution to make it more equitable is govern-
ment’s distribution function.
A major role of government at a federal level is its stabilization
function. The government has strong interest in achieving macroeco-
nomics goals of stable prices (no inflation), stable growth in aggregate
output and full employment of the labour force and other productive
resources. To achieve this government controls the nation’s supply of
money, sets up taxes and the like.
Policymakers, therefore, must keep in mind all the effects of the
actions government might take.
Exercises
2. Find in the text English equivalents for the following words and
word combinations:
действуют, четко определены; правила игры; исправлять ошибки
и просчеты; существование; требуется; инфляция; медленный
экономический рост; вмешательство; доход; предполагает; по-
пытки второстепенный; экономика, ориентированная на рынок;
присваивать (владеть).
3. Make up pairs of synonyms in the list of words.

To enable, property, expensive, to enforce, unfair, ownership,
costly, aim, effect, inequitable, result, goal, to modify, to rule, authori-
ties, to change, government, to control, to set up, outcome, to estab-
lish.
65

1) What role does the government play in a market oriented
economy?
2) Will government’s intervention always lead to the improve-
ments in economy?
3) What is the first function of government in a market-oriented
economy?
4) What is the allocation function? What does it include?
5) How does government fulfill its distribution function?
6) What is a major role of government at a federal level?
7) What macroeconomic goals does government try to achieve?
 5. In pairs, using the dialogue and text A discuss with your

partner the following statements:
 Government participation in the economy should be kept to a
minimum. The best that government can do to help the economy is to
keep its hands off business.
 There are too many problems to be left to the marketplace,
such as public health, education, environmental pollution and the like.
It, is government that should keep control over them.
 Government is always responsible for economic situation in
a country, growing inflation, increasing crime rate and the like.
66
Use the scheme:

Use the scheme:
I think, the role There is no doubt about it.

of government Nevertheless, in a market-
… oriented economy
government’s efforts …
In my opinion there are

You’re right. What is the
too many …
… should keep control main …?
over them.
Policymakers, therefore, …
Of course, … property
rights. The other
functions …
6. Prepare a short retelling of the text.
6. Prepare a short retelling of the text.
Text B
All government’s functions are quite interrelated. It is difficult

for government to pursue one of the objectives without affecting
another.
Changing distribution of income will alter consumption patterns.
Policymakers must recognize the fact that attempting to meet one ob-
jective, may require other objectives to be sacrificed. In order to carry
out its allocation, distribution roles government must allocate or budg-
et its revenues among competing uses.
Where do governments get funds to make all necessary expendi-
tures? They obtain revenue primarily from taxes, which account for
some two-thirds of both federal and state revenues and about half of
local government revenue (in the USA).
67
Because the federal government has tended to spend far more

than it receives in tax revenue for the past 20 years, borrowing is now
very important at the federal level.
At the state level, federal grants are the most important revenue
sources.
The property tax is also used by local governments, rather than
the income tax or sales tax, because people cannot easily avoid a tax
on immobile property.
The federal government handles national defense and most trans-
fers. State governments provide education, roads and the like. Local
governments provide water, police, fire and health services.
So, governments collect taxes, purchase and produce goods and
services, borrow money, and take part in other economic activities.
Really governments are involved in promoting all the economic goals.
Exercises
1. Scan the text and choose the title for it:

a) Government’s Functions
b) Revenues and Expenditures of Government
c) The Borderline between Market and Government
2. Finish up the sentences.

1) The main sources of federal government revenues are …
2) The main sources of state government revenues are …
3) The federal (state, local) governments are responsible for …
3. Study the table and answer the questions.
FEDERAL EXPENDITURES (USA)
1970 1988
Some items of spending category
Percent Percent
(статья расходов)
of total budget of total budget
Defense, space, and international affairs 45 % 31 %
Social security, well-fare, health 36 % 50 %
Education, commerce, transport 10 % 6%
Energy and national resources 2% 2%
68
1) What is the federal government largest expenditure?

2) What is the tendency of its development?
3) Defense spending fell, didn’t it?
4) What is the tendency of education expenditure development?
5) What is the tendency of social security expenditure develop-
ment?
6) What is the least expenditure?
7) What is the tendency of energy and natural resources expendi-
ture development?
Text C
Theorist Who Brought Economics into the Twentieth Century
John Maynard Keynes stands with Adam Smith and Karl Marx
as one of the world’s most influential economists. He served the Brit-
ish government as financial adviser and was a key participant in the
negotiations following both World Wars I and II.
Although Adam Smith had written «The Wealth of Nations»
about the time of the American Revolution, by 1930-s little had
changed in the thinking of economists. Most would agree with Smith,
that the best thing government could do to help the economy is to
keep its hands off. They reasoned that as long as the economy was
free to operate without interference, the forces of supply and demand
would come into balance. Then, with total demand and supply in bal-
ance, everyone looking for a job could find it at the prevailing wage,
and every firm could sell its products at the market price.
But as the 1930-s was the period of the government depression,
the fact was that unemployment and business failure had reached
record proportions. At that time Keynes demonstrated that unem-
ployment could persist indefinitely, unless someone stepped in to in-
crease total demand. The «someone» Keynes had in mind was gov-
ernment. So, the ideas advanced by Keynes have become a part of
conventional wisdom. In addition, government as well as markets can
fail.
69
Exercises
1. Scan the text.
2. Will you give any example how government steps in to help the
national economy in your country?
3. Finish up the sentences. Use the words: «against», «in favour

of»
According to Adam Smith …

According to John Maynard Keynes …
Text D
Economic Security
Historically, national security includes the strength of nation’s in-

frastructure, the foundation upon which the continuous growth of our
society depends. This includes our strong societal and moral codes,
the rule of law, stable government, social, political and economic in-
stitutions and leadership.
Nation’s strength also requires investments in science, engineering,
research and development.
National security must include a healthy market-based economy
with globally competitive products and services that produce jobs.
Economic security or financial security is the condition of having
stable income or other resources to support a standard of living now
and in the foreseeable future. It includes:
 probable continued solvency

 predictability of the future cash flow of a person or oth-
er economic entity, such as a country
 employment security or job security
Economic security, in the context of politics and international rela-
tions, is the ability of a nation-state to follow its choice of policies to
develop the national economy in the manner desired. Historically,
conquest of nations have made conquerors rich through plunder,
70
access to new resources and enlarged trade through controlling of the

conquered nations' economy. In today's complex system of interna-
tional trade, characterized by multi-national agreements, mutual inter-
dependence and availability of natural resources etc. Economic securi-
ty today forms, arguably, as important a part of national security as
military policy.
Exercises
2. Do you agree with the phrase:

“Providing national security leads to the national indepen-
dence in global scale”?
3. Develop the idea:

 Investments in science help …
 Stable government can …
 Producing competitive products and services people
make the economy …
 Stable incomes provide …
4. Find key sentences of the text.
5. Make a summary of the text.
BE READY
Write a composition. Topics:

1. I am working in the government. My first steps to help the
economy.
2. My idea of an ideal policymaker.
71
LESSON 5
Compare the words:

supply – to supply
demand – to demand
Supply is an amount or quantity of something that is available to use.

To supply means to provide someone or something with something
that they need or want.
Task 1. Read and translate the following a) word combinations

and b) sentences, pay attention to the part of speech the word
«supply» belongs to.
a) food supply; to supply raw materials, energy supply, to supply
diverse produce for the population, money supply;
b) 1. A limited oil supply has made gas prices raise. 2. The fall-
ing leaves provide a good supply of nutrients to the soil. 3. Industry
supplies agriculture with all necessary machinery. 4. Agriculture sup-
plies people with food and industry with raw materials.
Demand is the amount of a product or service that people want, or the

fact that they need it.
To demand means to be in situation when something is necessary.
To be in demand – to be wanted by a lot of people.
Task 2. Read and translate the following:

a) word combinations and
b) sentences, pay attention to the part of speech the word
«demand» belongs to.
a) increase of demand, market demand, demand shift, to demand
skilled labour, to demand high quality goods;
b) 1. 18,400 new houses will be needed by 2011 to cope with the
demand. 2. Demand for organic food is increasing. 3. Our software is
in demand all over the world. 4. Modern agriculture demands high
skilled specialists. 5. The work of bookkeeper demands attention.
72
Introduction Text
Supply and Demand in Real Markets
What if sellers do not know the demand or the supply schedules?

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МИНИСТЕРСТВО СЕЛЬСКОГО ХОЗЯЙСТВА

Кафедра «Философия, история и иностранные языки»

ENGLISH FOR ECONOMISTS AND MANAGERS

Рецензент – И.Е. Шпагина, кандидат экономических наук, доцент

Дмитриева, Светлана Юрьевна

Учебное пособие подготовлено в соответствии с рабочими програм-

Данное пособие предназначено для студентов 2-го курса

Compare the words:

Economy is a system by which a country‟s trade, industry and money

Task 1. Use: «economy» or «economics.»

Economic means relating to the economy of a particular country or

Task 2. Use: «economic» or «economical.»

Economics – how people satisfy their needs and wants – has

2. Answer the questions: «Have you got any new information?

3. Continue the following: a) Economics is … b) A need is … c) A

4. Comment on the table. Give your examples to illustrate it.

5. Refer the following words into two categories: goods or servic-

6. In groups of four, discuss the question: «Economics has been

2. Use: am, is, are.

3. Use: have (got), has (got).

4. Use: do, does.

street. 7) I … not know any country with a pure market or command

1. Translate the word combinations.

2. Make up various word combinations and translate them.

3. Ask questions to the sentences (general, special).

5. Translate the words.

Useful Words and Word Combinations

2. Match the words with their definitions.

Consumer a) condition of having comfortable living and work-

Economic activity began with the advent of towns and villages,

In truth, most nations’ economies are mixed, that is they contain

2. Find English equivalents for the following word combinations:

3. Answer the questions to the text.

4. In pairs, complete the dialogue. Give necessary information

5. Find in the text all nouns in the function of an attribute.

6. Retell the text.

The basic economic questions of what, how and for whom to

However, a central authority has got little information available

Command economy Market economy

For ideas: to serve as arbitrator when legal disputes arise; to

1. Match the words with their definitions.

a) the gifts of nature that are used to produce

Compare the words:

Social means 1) relating to society and to people‟s lives in general;

Task 1. Insert the proper word: social, sociable, society, socialism.

Task 2. Fill in the grid.

Economy is a social mechanism which answers the main eco-

1. Scan the text.

2. Answer the question: «Have you got any new information?

3. Find sentences about: a) economic questions; b) economic

4. Explain in your own words the meaning of the concepts:

there is/there are

2. Make the sentences interrogative and negative.

1. Translate the sentences with «it».

2. Read and translate the words:

3. Translate the words paying attention to the suffixes.

Useful Words and Word Combinations

aircraft industry – авиационная промышленность

revival – оживление, возобновление

1. Translate the sentences.

2. Make up pairs of opposites in the list of words.