TEST 1. (The Science of Economics; Macroeconomics and Microeconomics; The Future of Economics; Economic Systems: Two Important Distinctions)

 

I. Match the terms with their definitions:

 

1. Goods	A. a reduction in the level of total spending resulting in lower levels of trade, profits, and prices
2. Boom	B. the raw materials, tools and machines employed in the production process
3. Deflation	C. the branch of economics concerned with aggregates, such as national income, consumption, and investment
4. Market	D. a period of high economic growth
5. Slump	E. commodities that are tangible, usually movable, and generally not consumed at the same time as they are produced
6. Macroeconomics	F. an economic condition characterized by substantial unemployment, low output and investment, etc.
7. Means of production	G. the doctrine of unrestricted freedom in commerce, especially for private interests
8. Laissez-faire	H. an institutional arrangement that fosters trade or exchange

 

II. Put the words in the correct order:

1. Restrictions, can, on, business, do, face, with, owners, they, capital, many, their, what.

2. Analysis, commodities, individual, with, decisions, microeconomic, deals, particular, about.

3. Science, of, extent, it, principles, a, economics, to, set, is, analytical, the, comprises, that, a.

4. Studies, every, for, theory, commodity, general, market, simultaneously, equilibrium, every.

5. All, aggregate, we, purchases, discuss, of, behavior, total, the, can, households, and, production, to, firms, and.

6. Needs, it, prosperity, the, know, everyone, explains, to, framework, economics, of, some, because.

III. Fill in the gaps with the words or word combinations in italics:

Market forces, value, depression, business activity, planning, economists, welfare, inputs, economic growth, capitalist, consumer goods, national income, macroeconomics, publicly owned, management.

1. The central problem of … in the second half of the twentieth century is the … of prosperity to maximize individual ….

2. …look forward to a future where the stockpiling of … ceases to be the major preoccupation of people’s minds.

3. In former times, the free play of … was left to decide the level of …, and the rate of ….

4. Modern economics is the study of how … is determined, and how … relate to each other in production.

5. The new economics can handle the cycles of … which caused such distress in the early years of the … system.

6. Even in countries with rigid state …, where large companies are …, those who can afford it can own a small business.

7. In the past economy tended to grow in spiral-like movements of ….

IV. Are the following statements true or false? Correct the false ones:

1. Capitalism can never exist with central planning.

2. The whole economy stands or falls by what is achieved for the individual.

3. The unique feature of economics is that it studies human behavior.

4. Economics shouldn’t be regarded as a set body of principles.

5. Macroeconomics in modern society is largely a study of government economics.

6. Controls over economic activity are likely to decrease in the future.

7. The outcome of any macroeconomic policy is always certain.

8. There is still disagreement about the nature and scope of economic inquiry.

9. Private ownership in a country and its reliance on free markets are equivalent features.

10. As a rule, microeconomists focus on one aspect of economic behavior in order to preserve the simplicity of the analysis.

V. Translate the following sentences into English:

1. Экономика, в отличие от родственных социальных наук, изучает поведение человека в условиях рынка.

2. Предметом макроэкономической теории является функционирование экономики, рассматриваемой как единое целое.

3. Экономика капитализма отнюдь не исключает государственного планирования.

4. Макроэкономическое равновесие представляет собой единственный ценовой уровень, при котором объем предлагаемой на рынке совокупной продукции равен величине совокупного спроса.

5. Экономический рост – это долгосрочная тенденция увеличения реального объема производства.

6. Такие ключевые вопросы, как место экономики в ряду других дисциплин, методы и масштабы экономического исследования и др., до сих пор вызывают оживленные споры.

7. Спад – исходная фаза экономического цикла, характеризующаяся снижением деловой активности, сокращением объемов производства и инвестиций, а также ростом безработицы.

8. Различают два подхода к изучению совокупного предложения: классический (долгосрочный период) и кейнсианский (краткосрочный период).

9. В определенной точке экономического цикла объемы производства достигают максимальных значений, после чего начинается их постепенное снижение, зачастую в результате государственного регулирования.

10. В рамках микроэкономики рассматривается поведение и взаимодействие индивидов, домохозяйств, фирм и функционирование отдельных рынков.

 

TEST 2. (Labour, Unemployment)

 

I. Match the terms with their definitions:

 

1. Incentive	A. the systematic shifting of employees from one job to another
2. Labour force	B. the irreducible minimum level of unemployment in a dynamic society
3. Unemployment rate	C. working at a secondary job
4. Sabotage	D. an additional payment made to employees as a means of increasing production
5. Frictional unemployment	E. work requiring little specialized training
6. Moonlighting	F. the total number of workers available for employment in a country
7. Job rotation	G. the deliberate destruction, or damage of equipment, a public service, etc., by dissatisfied employees
8. Unskilled labour	H. the percentage of people without a job but registered as being willing and available for work

 

II. Put the words in the correct order:

1. Of, increases, labour, to, moonlighting, supply, entrepreneurs, the, available.

2. Demand, a, leads, output, in, lower, and, fall, to, employment, aggregate.

3. Difference, unemployment, and, stresses, modern, the, involuntary, analysis, between, voluntary.

4. Continuing, are, retirement, of, people, capable, age, employment, in, many, productive, of.

5. Standard, force, fully, the, raising, of, depends, living, a, labour, on, effective.

6. Motivating, and, enrichment, provide, to, advancement, job, opportunities, tends, growth, for.

III. Fill in the gaps with the words or word combinations in italics:

Working hours, specialization, job enlargement, take on, supply, wage rate, skilled, income, competition, quality, train, participation rate, redundant.

1. A lot of … workers may be made … when an industry declines in the face of foreign ….

2. In …, the employee is given more things to do within the same job.

3. More important than the actual … of labour is the … of labour.

4. The … is the percentage of the population of working age who declare themselves to be in the labour force.

5. Some workers prefer extra … to shorter ….

6. Firms are often reluctant to … and … older workers.

7. Some people want to work at the current … but can’t find jobs.

8. The most significant drawback of … is monotony.

IV. Are the following statements true or false? Correct the false ones:

1. Moonlighting is quite common because most people like working late.

2. Frictional unemployment can be reduced.

3. The labour force comprises all those employed or willing to find a job.

4. Where there are few incentives labour is less efficient.

5. Demand-deficient unemployment occurs when aggregate demand exceeds full-employment aggregate demand.

6. Skilled labour tends to be more specific than semi-skilled labour.

7. Structural unemployment is created when the wage is deliberately maintained above the equilibrium wage rate.

8. Labour is the supply of human resources, both physical and mental, which are available to engage in the production of goods and services.

9. Classical unemployment is involuntary.

10. All those people who are looking for work will be automatically included in the official statistics for the labour force, whether or not they have registered as unemployed.

V. Translate the following sentences into English:

1. В состав рабочей силы не включаются две группы населения: лица нетрудоспособного возраста, а также лица, которые по каким-либо причинам не могут или не хотят трудиться.

2. К наиболее серьезным социальным последствиям безработицы относится потеря квалификации.

3. Материальное поощрение дает стимул для повышения производительности труда.

4. Структурная безработица возникает в результате изменений в экономике, приводящих к сокращению спроса на одни профессии и повышению спроса на другие.

5. Безработные – это люди трудоспособного возраста, которые не имеют работы, но активно ее ищут и готовы приступить к работе немедленно.

6. Число фрикционных и структурных безработных в сумме составляет естественный уровень безработицы.

7. В настоящее время многие устраиваются на работу по совместительству, поскольку она приносит дополнительный доход.

8. В сложившихся экономических условиях большинство людей пенсионного возраста стараются по возможности продолжать работу.

9. Существует взаимозависимость между повышением эффективности труда и ростом уровня жизни.

10. Средства, вложенные в образование, со временем окупаются, так как они позволяют человеку найти более интересную и высокооплачиваемую работу.

 

TEST 3. (Wants and Utilities, Supply and Demand)

 

I. Match the terms with their definition:

 

1. marginal utility	A. is decided by the interaction of supply and demand
2. price	B. are the basic needs of mankind
3. wants	C. describes the behaviour of sellers
4. total utility	D. is the desire to buy supported by the ability to pay
5. effective demand	E. is the utility of one unit of a good or service
6. supply	F. is the satisfaction we receive from possessing one extra unit of a commodity

 

II. Put the words in the correct order:

1. wants, satisfy, which, purpose, economy, to create, mankind’s, the, of, an, is, utilities, will.

2. is, varies, changing, demand, not, but, with, fixed, conditions.

3. the, the, of, of, of, effects, price, enterprise, an, commodity, prospects, profitability.

4. “wants”, “wants”, even, we, these, when, other, present, more, themselves, have, basic, advanced.

5. are, our, by, which, services, attention, intangible, personal, “utilities”, needs, satisfy.

III. Fill in the gaps with the words in italics:

Scale, commodity, goods, price, requirements, scale, substitutes, services, purchasers, competitor.

1. An increased demand raises ….

2. When the price of a … rises the quantity that is supplied will be increased.

3. … are tangible items which either satisfy the basic … of human life or make that life fuller and richer.

4. Scale of preferences is an arrangement of things in one’s own mind with the most preferred items towards the top of the ….

5. Demand is the quantity of goods and … which … are prepared to buy at a given price in a given period of time.

6. If the goods are close … for one another, the price of one will be seriously affected by a lower price of its ….

IV. Are the statements true or false? Correct the false ones:

1. Man’s wants and demands are unlimited.

2. Demand is set.

3. Total utility usually rises while marginal utility always falls.

4. When the price of a commodity rises the quantity that is demanded will be increased.

5. Suppliers don’t vary in their ability to supply.

6. A progressive system of taxation strengthens the purchasing power of consumers.

7. If there is an alternative to a commodity, then it is no longer a necessity.

8. A decreased supply lowers market price.

V. Translate the following terms into English:

1. потребительская корзина

2. предельная полезность

3. человеческие потребности

4. убывающая предельная полезность

5. удовлетворять потребности

6. создавать полезности

7. общая полезность

8. основные требования (запросы) человеческой жизни

9. потребительские товары

10. факторы производства

 

TEST 4. (Market, Markets and Monopolies)

 

I. Match the terms with their definitions:

 

1. Equilibrium	A. prices now current in the market
2. Prevailing price	B. a state of balance when all the economic forces present in a situation have an equal influence and there is no tendency to change
3. Patent	C. something which encourages one to greater activity
4. Barriers to entry	D. a market with single buyer who has some influence over the price of his output
5. Incentive	E. protection from being copied or sold by those who do not have a right to do so
6. Franchise	F. factors which prevent the entry of new firms into an industry
7. Monopsony	G. privileges
8. Natural monopoly	I. a market consisting of two sellers
9. Duopoly	J. a situation when a single firm can serve a particular market at lower cost than any combination of two or more firms

 

II. Match the two parts of the sentences:

1. Natural monopoly arises out of ….

2. Monopoly is a situation where ….

3. Monopolies can only continue to exist if ….

4. When there are only a few buyers, ….

5. An oligopoly is a market characterized by a small number of firms ….

6. Oligopoly is distinguished from perfect competition because ….

7. When all firms are of (roughly) equal size, ….

8. A market is simply a mechanism, ….

A. …which allows individuals or organizations to trade with each other

B. …the properties of productive technology

C. …who realize they are independent in their pricing and out polices

D. …the oligopoly is said to be symmetric

E. …each firm in an oligopoly has to take into account their independence

F. …there is a single seller in the market

G. …the market is defined as an oligopsony

H. …there are barriers to entry

III. Fill in the blanks with the words or word combinations in italics:

Aggregate supply, geographic areas, scope, aggregate demand, buyers, transacted, dimensions, actual, sellers, products, potential

1. Markets can be in “equilibrium” or “disequilibrium” depending on whether or not … equals … at the prevailing price.

2. Markets may be local, regional, national or international in … and do not necessarily require … and … to meet or communicate directly with each other.

3. Business may be … through the use of intermediaries as well.

4. There are two fundamental … of market definition: the product market, that is, where … group together and the geographic market, that is, where… group together.

5. Market definition generally includes … and … sellers.

IV. Are the following statements true or false? Correct the false ones:

1. When a market functions properly, the quantity of goods and services demanded and supplied must be equal at some given price.

2. Markets are similar in scope. There are only local markets where buyers and sellers must meet and communicate directly with each other.

3. To define a relevant market all you need is to identify the number of companies and products available in the market.

4. Monopolists, being largely immune from competitive pressures, do not have the appropriate incentives to minimize costs or undertake technological change.

5. An oligopoly is a market characterized by a large number of firms who realize they are dependent in their pricing and output polices.

V. Translate the following sentences into English:

1. Рынок – это открытое для всех место, где покупаются и продаются товары или услуги, напрямую или через посредников.

2. Рынок, где спрос на продукцию больше имеющегося предложения, называется рынком продавца, а рынок, где предложение превышает спрос, цены низкие, а условия сделок устанавливаются покупателями, называется рынком покупателя.

3. Монополистическая конкуренция – это ситуация, когда на рынке присутствуют несколько продавцов, каждый из которых способен устанавливать цену, то есть каждый имеет некоторую монополистическую власть.

4. Монопольное положение позволяет фирме сохранять любые сверхприбыли.

5. Цена, при которой предложение товара равно спросу на него, называется равновесной ценой.

6. Цены на аналогичные товары могут отличаться и зависеть от времени и места продажи или его качества.

7. Картель создается для взаимной пользы фирм – членов картеля.

 

TEST 5. (Money, Pricing, The Problem of Inflation)

 

I. Match the terms with their definitions:

 

1. Penetration pricing	A. selling a product at a high price, sacrificing high sales in order to earn high profits
2. Creaming (skimming)	B. the quantity of goods or services that money will buy at a certain time
3. Legal tender	C. the bank’s liabilities to its customers
4. Demand inflation	D. selling a different price for the same product in different segments of the market
5. Token money	E. the kind of inflation that is caused by rising costs of labour and materials
6. Price discrimination	F. coins in which the metallic content is less valuable than the face value
7. Cost inflation	G. selling an initial low price for a new product so that it is attractive to customers
8. Bank deposit	H. the form of money in which a person has a right by law to pay a debt
9. Barter	I. the kind of inflation caused by an excess of demand over supply resulting in a decrease in the value of money
10. Value of money	J. exchange of goods for goods

 

II. Put the words in the correct order:

1. system, trade, until, has, is, full, a, usually, by, on, carried, barter, developed, money, been.

2. charged, any, needs, carefully, the, by, to think, price, rivals, business, about.

3. be, the, price, must, general, a, form, level, average, of, therefore.

4. acceptable, to be, it, if, tender, is not, legal, generally, will, then, money, cease.

5. is, would, once, in, business, the, a, established, product, raise, its, market, the, price.

6. of, index, the, price, normal, of, method, is, the, calculation, by, use.

III. Fill in the gaps with the words or word combinations in italics:

Money, creaming, value, cost inflation, losses, demand inflation, increases, barter, legal tender, price

1. …is setting a high price for a product initially and lowering it later on.

2. Money is only a claim against the real goods that have ….

3. …assumes that the collective upwards “push” of costs is sufficient to raise the general level of prices.

4. Charging a price similar to competitors is one way to set prices but it might lead to ….

5. …in the quantity of money were likely to lead to increases in prices.

6. If … is not generally acceptable then it will cease to be money.

7. …is one element of the marketing mix.

8. …is of no use unless the wealth is being created.

9. …takes place when supply cannot respond (i.e. when most of all resources are already employed) and leads to a rise in prices instead of to extra output.

10. …entails the necessity of a double coincidence of wants.

IV. Are the following statements true or false? Correct the false ones:

1. Paper money is convertible into gold.

2. Bank deposits, which are money, are not legal tender.

3. A fall in prices means that the value of money has risen.

4. The value of money changes proportionally with changes in the price level.

5. The price of similar competitive products does not influence pricing.

6. When the price covers both the average fixed and variable costs of the product, the business is said to be full-cost pricing.

7. The measurement of the inflation does not depend upon the general price level.

8. The selling of the country’s currency often takes place when inflation rates exceed the tolerances allowed for by the government.

V. Translate the following terms into English:

1. стратегия «снятия сливок»

2. стратегия «проникновения на рынок»

3. ценовая дискриминация

4. индекс розничных цен

5. ползущая инфляция

6. поднимать уровень цен

7. средство сохранения стоимости

8. номинальная стоимость

9. внутренняя (реальная) стоимость

10. законное платежное средство

TEST 6. (Banking, Central Banking, Loans in the UK)

 

I. Match the terms with their definitions:

 

1. Legal tender	A. a bank officially appointed by law to work closely with the government
2. Central bank	B. a joint stock bank
3. The balloon loan	C. the form of money in which a person has a right by law to pay a debt
4. Commercial bank	D. a loan where the repayments are unevenly distributed throughout the life of the loan
5. Fund	E. an amount of money borrowed by an individual or a company
6. Loan	F. amounts of money

 

II. Put the words in the correct order:

1. The, of, on, to, and, a, its, nature bank, setting, largely, which, according, function, time, vary, central, depends.

2. Loans, as, and, are, irregularly, such, balloon, bullet, repaid.

3. Rate, as, loan, interest, the, is, the, the, in, market, determined, price, equilibrium.

4. “Legal tender”, coins, of, the, in, and, status, notes, have, circulation.

5. Methods, central, banking, objectives, and, widely, commercial, differing, involve, and, functions.

III. Fill in the gaps with the words or word combinations in italics:

Transactions, customer, certified, loan, cheque, cash, cheque, currency, balloon

1. The most common means of payment, particularly for significant sums of money, is the … since it is both safer and more convenient than using ….

2. Central banking is an activity separate from ordinary … banking, because a central bank usually has few … with private customers, dealing primarily with commercial bank and with the national government.

3. If a … wishes to make payments of large amounts of money by … and is not known to the creditor, then he may obtain a “… cheque” from the bank.

4. The hard and the soft … is given by one country to another on condition that the borrower repays it in the lender’s … or the borrower’s currency.

5. The … loan is a loan where the repayments are unevenly distributed throughout the life of the loan.

IV. Are the following statements true or false? Correct the false ones:

1. Paper money consists of notes issued by commercial banks.

2. Coins and bills of every denomination are called legal tender.

3. Central bank is a bank officially appointed by law to work closely with the government.

4. Commercial banking system is profit motivated.

5. Functions of commercial banks are unlimited.

6. Certified cheques are always guaranteed by a bank.

7. Bills of exchange are now used mainly in foreign trade.

8. The interest rate can’t be determined as the equilibrium price in the loan market.

V. Translate the following terms into English:

1. законное платежное средство

2. дорожный чек

3. коммерческий банк

4. выплатить по чеку

5. финансовый агент правительства

6. выпускать банкноты

7. льготный заем

8. заемщик

9. закладная на имущество

10. ссудный процент

 

TEST 7. (Market Research, Marketing, Consumer Choice)

 

I. Match the terms with their definitions:

 

1. Market research	A. relates quantity demanded of one good to its own price
2. Secondary data	B. the process of gaining information about customers, competitors and market trends through collecting primary and secondary data
3. Engel curve	C. maps quantity demanded of one good against changes in income
4. Objects of consumer	D. finding out information from secondary data choice
5. Desk research	E. information which already exists
6. Consumer tastes	F. goods and services, yielding utility which can be ordered and measured
7. Field research	G. the process of collecting primary data
8. Demand curve	H. can be represented by a map of non-intersecting indifference curves
9. Marketing	I. the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives.

 

II. Put the words in the correct order:

1. Prefers, since, the, more, consumer, to, indifference, less, must, downwards, curves, slope.

2. Sale, in, every, a, random, respondent, an, potential, has, of, chance, chosen, equal, being.

3. Reflect, curves, the, indifference, of, principle, a, marginal, diminishing, of, substitution, rate.

4. Can, information, business, which, collect, is, from, sources, available, the, outside, business.

5. Are, goods, if, the, quantity, normal, will, demanded, increase.

6. May, data, collected, primary, be, observation, survey, through, experiment, and.

III. Fill in the gaps with the words or word combinations in italics:

Substitute, accounts, tastes of preferences, equilibrium, budget constraint, primary data, observation, marketing, force, market research

1. The way in which the consumer ranks the alternatives available is called the consumer’s ….

2. The consumer’s … shows how the upper limit on consumption may be allocated among consumption patterns or goods at given prices.

3. Marketing is a … within the organization that encourages socially and ethically responsible behaviour in the market place.

4. There is little universal agreement on the best or right definition of ….

5. Finding out about what consumers want and need, and what makes them buy, is called ….

6. …will give information about the value of sales and costs of production.

7. …are collected through direct investigation.

8. In a two-good world, a good whose quantity purchased moves together with the changes in the price of the other good is called ….

9. Maximizing consumer utility generates an … where the budget constraint and the highest possible indifference curve are tangential.

10. …can’t tell the supermarket anything about why shoppers are behaving in this or that way.

IV. Are the following statements true or false? Correct the false ones:

1. When the product is launched, a carefully researched product stands less chance of failing.

2. Surveys cannot be useful for market research purposes if the questions asked are appropriate.

3. Research involving asking questions of people or organizations is called a questionnaire.

4. Product oriented business develops products which have been researched and designed to meet the needs of consumers.

5. In equilibrium the marginal rate of substitution between goods is equal to their ratio of prices.

6. The cross elasticity of demand measures the proportional change in the quantity demanded of one good to a proportional price of another.

7. The foundation of exchange is creating or adding value for the buyer.

8. To launch a new product is never very costly.

V. Translate the following terms into English:

1. предельная полезность

2. функции маркетинга

3. проводить опрос

4. бороться за покупателей

5. вопросник

6. конкурентные предложения

7. почтовый опрос

8. делать выбор

Part III. Resource Tests