EXERCISES. I. Answer the following questions:

I. Answer the following questions:

1. How are the different branches of economics classified?

2. What distinguishes an energy economist from an urban economist?

3. Are the same questions asked in each area of economic life?

4. What is needed before total car purchases and production can be discussed?

5. What does the general equilibrium theory examine?

6. What can be understood from such a study?

7. What happens when an analysis becomes too complicated?

8. What can keep an analysis manageable?

9. What does microeconomics do?

10. Is the general equilibrium theory part of microeconomics or macroeconomics?

11. What do most micro-economists leave out of their analysis?

12. Is partial analysis part of microeconomics or macroeconomics?

13. What does partial analysis ignore?

14. What does macroeconomics do?

15. Why wouldn't most macroeconomists make a breakdown of consumer goods?

II. Suggest Ukrainian equivalents:

• cuts across the large number of subject groupings cited above;

• the sophisticated branch of microeconomics;

• the complete pattern of consumption, production, and exchange;

• to devise judicious simplifications;

• keep the analysis manageable;

• to retain a manageable analysis;

• indirectly induced effects

III. Suggest synonyms to the following expressions

• pulling out of shape

• pay not enough attention

• pay no attention

• think out, plan

• keep safe

• brought about

showing good sense

keep

make less complicated

as a rule

characteristically

be sensible

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

1. What distinguishes different economists is_____ in which they are interested.

2. Urban economics deals with city problems: land use, transport,______, and housing.

3. We can also classify branches of economics according to____ that is used.

4. The very broad division of approaches into microeconomic and macroeconomic _ the large number of subject groupings.

PART I. ECONOMICS

5. To discuss total car purchases and total car production we can_____ the behaviour of

all households and all firms.

6. The sophisticated branch of microeconomics known as_____ studies____ every market

for every commodity.

7. The task for economics is to devise____ simplifications, which keep the analysis_____

without___.

8. Microeconomists tend to offer____ of one aspect of economic behaviour but_____ with

the rest of the economy in order to_____ of the analysis, largely____ the chain of____.

9. When microeconomic analysis ignores such indirectly induced effects it is said to be

10. Macroeconomics___ the individual building blocks of the analysis in order to______ a

manageable analysis of___ of the economy.

11. Macroeconomists prefer to treat cars, bicycles, televisions, and calculators as a single
called "consumer goods'.'

V Test your vocabulary. "Key Economic Terms'.' Match each of the words or phrases (1-12) on the left to an appropriate definition (a-l).

1. central bank	a) Education and skills development for young people and unemployed.
2. exchange rate	b) The part of the economy that does not make goods. Also known as tertiary sector.
3. inflation	c) The money a government needs to borrow to pay for what it does.
4. interest rates	d) The value of a national currency against other currencies.
5. invisible earnings	e) The annual cost of borrowing money from a bank/
6. manufacturing industry	f) A measure of retail price increases.
7. national debt	g) The principal national banking authority.
8. public sector borrowing requirement	h) The part of the economy that makes products and changes raw materials into products.
9. public spending	i) The number or percentage, of people out of work.
10. service sector	j) Government spending.
11. training	k) The total amount of money that a government owes.
12. unemployment rate	1) Income in foreign currency for services such as banking, insurance, tourism.

VI. Acronyms and Abbreviations. Complete the following stand for:

1. ASEAN 4. GATT 7. IMF 10. WWF

2. OPEC 5. IBRD 8. EU 11. OECD 3.PSBR 6. UN 9. GNP 12. WHO

VII. Define each of the words given below, using the pronouns who and which:

macroeconomics is.. a worker is... a miner is... coal is...

an energy economist is... who... microeconomics is... which... international economics is... a monetary economist is... consumer goods are...

VIII. Explain in English:

consumption; exchange; partial analysis; simplification; indirect effect

IX. Writing Practice. Make a short summary about macro- and microeconomics from the above text. Use the opening phrases from Appendix 1.

UNIT 2. MICROECONOMICS AND MACROECONOMICS

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