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4.The _____ income of every family is affected by the health of the national economy.

5.When managers plan ___and ____ , they try to take into account possible changes in business environment, but they do not always succeed.

6.In spite of uncertainties every company tries to _____ in its activities.

7.Social changes _____ consumer buying habits.

8.In the market the rise in demand sooner or later will always be followed by ____ ; the situation in the market is constantly changing.

Text 2

To understand how economy works let‟s look at its composition. The major division of the economy is a sector. The two major sectors are goods-producing and service-producing sectors (goods-producing and service-producing industries).

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Goods-producing industries are the firms that create tangible output such as automobiles, houses and agricultural products. Service-producing industries are firms that produce intangible benefits, such as financial services, medical care, travel advice and government assistance.

One of the most remarkable economic changes in Western Europe and USA over the past few decades has been the gradual transition of the economy from a producer of goods to a producer of services.

Price. Price is an important economic variable. Changes in prices of goods and services tell producer what to do

-set up production or curtail it,

-build up warehouse inventories or draw them down,

-undertake new investment projects or tighten the investment budget.

Prices changes affect consumer spending and saving patterns and that is why marketing managers should keep an eye on this process.

Inflation. Inflation is the rise in the general level of prices. Inflation itself is not new. The Romans complained bitterly about it in the reign of Diocletian. So did the Europeans in the 16th century, when gold arriving from the New World by the shipload sent food and other prices soaring. In the USA the greatest increase in prices after the Great Depression was experienced in 1947 when soldiers returning from World War II reentered the civilian life. The demand for civilian goods and services far outstripped the ability of the economy. There was 14 percent rise in prices that year.

Measuring inflation. The most commonly used measure of inflation is the annual percentage change in the consumer price index – CPI. CPI tracks changes in prices of a group of goods and

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services that most consumers buy. Prices are increasing when the CPU is positive and decreasing when it is negative.

Task 5

Give definitions to the following economic terms from the text. Inflation is …

Tangible output is Intangible output is Price is …

CPI is …

Text 3

Vocabulary

Downsizing Detroit

Detroit is the former automobile capital of the USA. Today the problem is that the population of Detroit has decreased twice; and the city cannot afford to serve the dying neighborhoods. The only solution to the problem is to downsize the city. The city budget is very low, and the project of downsizing the city is financed from two philanthropy organizations.

The plan of reviving the city is to create new economy, new jobs and improve the transport system, but mainly, the goal is to consolidate the city. One third of Detroit residential parcels are vacant lots or empty homes.

The downsizing of the city demands relocating the inhabitants of the dying neighborhoods; besides the city is to close some schools. This plan has a very unfavorable response

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from the public of the city, but for the present Detroit this is the only way out from the dramatic situation. The city and philanthropy organizations are working together to revive the city.

Task 6

Read the text without a dictionary, write out key words and give the main points of the text in Russian. Start with:

The former automobile capital of …

The problem is …

The plan is …

TEST1

1.Demand is the quantity of goods which _______ by consumers at given prices at a given period of time.

2.Effective demand is the demand which is reinforced by the ability of buyers ________ for the particular good.

3.Economists use the word “scarcity” to say that everywhere people have wants which ________satisfied.

4.The wants people have _______ and _______, thus they are unlimited.

5.Supply is the quantity of goods or services which producers and sellers are ready to offer at ______ prices at _______

period of time.

6.This year the food producing companies _______ their sales volumes.

7.Now we _______ the new economic strategy. The work has not been finished yet.

is developingwill develop

8. Demand and supply _______ interconnected.

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11. Economists _____ the economic situation and consult the management on the future development of the enterprise.

14.Since September 2012 we ______ much.

have learnthas learnt

15. The subject Microeconomics ________ for first –year students.

won‟t teachisn‟t taught

16. Every-day operations of accountants and economists of all levels ______ handling of such documents as bills, checks, payment orders, letters of credit and invoices.

includinginclude

Choose well. Not only one variant may be good for you, you can take two or more but be attentive.

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17.I‟ve chosen the profession of an economist because specialists in economics

are in great demand and I will certainly have a good well-paid job;

I have economists and accountants in the family, and they all like their job;

I am good at figures, and mathematics is my favorite subject;

The country needs people who can analyze and manage the economy.

18.When I finish the Academy, I will have

Certificate of secondary education;

Master‟s degree;

Bachelor‟s degree;

Post-graduate‟s degree.

19.Today to handle statistical data and financial reports economists must

be computer-literate;

know three Rs (reading, writing, arithmetic);

be good at all four arithmetic operations (addition, subtraction, division and multiplication);

have a good analytical mind;

be all this, have and know all that and lots of more.

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Unit 2 Management

Text 1

Management: Art or Science

Vocabulary

Management includes careful planning, coordination and control.

Managers achieve organizational goals by arranging for others to perform necessary tasks. This is the general definition of management.

As a science management relies on orderly systems and facts. Managers use modern theories of management based on psychology, sociology and anthropology, practical guidelines and sophisticated computer applications.

Management is art as it relies more on intuition, imagination and practical experience. That was the past of management. Today intuition and experience go hand in hand with scientific approach.

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Management is present everywhere. There are three levels of management in every organization: top, middle and lower managements.

Top management is concerned with overall direction of the firm development. Top managers see the whole big picture and plan ahead for several years.

Middle management is concerned with the proper functioning of the organization. Middle managers coordinate and act as a link between the top management and the lower management. They are responsible for buying raw materials, selecting new employees and planning the department work. The time span for their work is months.

Lower management has a specific narrow focus and a short time span to work. Lower managers make sure the work gets done on time. They work directly with employees.

Task 1

Give answers to the following questions.

1.What does management include?

2.How can we define management?

3.What does modern management rely on?

4.What sciences contribute into the modern theories of management?

5.Does management rely on intuition, imagination and practical experience?

6.How many levels of management are generally present in every big organization?

7.What are the goals and functions of the top management?

8.What is middle management responsible for?

9.What is the duty of lower managers?

10.So, what is management today: art or science?

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Task 2

A. Try to guess the meaning of these words without a dictionary.

Methodical, dynamic, humorous, organized, cooperative, accurate, competent, enthusiastic, tactful, practical, flexible, punctual, loyal, creative, self-motivated.

B. Study this list of adjectives which characterize people, their skills and personal qualities.

Have you ever met a born manager or a very successful manger? How can you characterize this person ?Give some recommendations for future managers .Use these models of speech:

It is important for a good manager to be….. A successful manager should be ….

In order to control, motivate and encourage people, managers must be…

C. What qualities would you like to develop in yourself?

Model: Say, I would like to be….

What qualities have you got already?

For example: My friends speak about me as a … person who… I have a reputation of being calm, …

My greatest advantage is that I …

From my parents I have inherited such qualities as ….

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