READING 1. Read the text and decide whether these statements are true or false. 1) The US government makes full use of economic tools. 2) The president takes all the necessary initiatives to ensure the growth and stability of the United States. 3) The recession the USA economy is due to large spending on national defense programs. 4) American consumers are greatly dependent on national debt. 5) The USA has lost their leading role in the world economy because of the rapid growth of the economies of such countries as Brazil, Russia, India and China. 6) The national debt of the USA is as large as the one of Japan. The US Economy 1. The United States of America has the worldacute;s largest economy. 2007 GDP is believed to be three times the size of the next largest economy, Japan. US dominance has been eroded by the creation of the European Union common market and by the rapid growth of the BRIC economies, in particular China. 2. The recent failure in the US housing and credit markets has resulted in a slowdown in the US economy. The forces of supply and demand directly drive the price levels of goods and services. What to produce, and how much of it is to be produced depends on the price level fixed by the interaction of supply and demand. 3. The role of government in the US economy is very important when it comes to decision-making in monetary and fiscal policies. The federal government takes all the necessary initiatives to ensure the growth and stability of the United States. The US government makes full use of economic tools such as money supply, tax rates, and credit control to adjust the rate of economic growth. The US Federal Government also regulates the operations of private business concerns in order to prevent monopolies. The government provides support for national defense, monetary aid for research and development programs, funds for highway construction and infrastructure in general. 4. The question of national debt is a controversial one within the US. American consumers are also increasingly dependent on debt and have been re-mortgaging their houses to higher loan amounts, and using the extra cash to fund shopping. This debt figure is the largest in the world in absolute terms, but as a percentage of GDP it is less than Japan and similar to several European countries. Most of the debt is funded by central banks and sovereign wealth funds from Asia, Europe and the Middle East. VOCABULARY 2. Match the words and phrases with the definitions. 1 debt A being the only one in a given market selling a specific product 2 market B a governing body or organization 3 goods C articles produced to be sold 4 government D the amount of money or goods, asked for or given in exchange for something else 5 price E something owed, such as money, goods, or services 6 taxpayer F an amount of cash or credit 7 money G a person who buys goods or uses services 8 bank H money in the form of bills or coins; currency 9 cash I a business establishment in which money is kept for saving or commercial purposes or is invested 10 consumer J the fundamental facilities and systems serving a country, as transportation and communication systems, power plants, schools, ect. 11 failure K firmness in position 12 stability L one that pays taxes 13 monopoly M lack of success 14 infrastructure N the business of buying and selling a specified commodity 3. Choose the best answer A, B or C from the list. 1. If you want to borrow money to buy a house, you ask the bank for a … 2. The bank has raised its interest …… to 6 %. 3. The general running costs a company, such as electricity and rent, are known as …… 4. With the Mondex smart card, you can …… funds from one card to another. 5. Whereas you pay interest on a mortgage, you …… interest on a savings account. 6. The total sale during a trading period is called …… 7. A company which owns one or more subsidiaries is called a …… company.
8. The strategy formulated by a government to central bank maintaining the stability of the currency and reducing inflation is called monetary ….… 9. A fall in business activity which affects the national economy is called a …… 10. ....................... industries belong to and are run by the government. 11. If thereacute;s only one producer in the market, thereacute;s no …………… 12. McDonald’s has a very big ……… of the fast food market. 13. When a business works ........................ it runs successfully without wasting resources. 1 A mortgage B loan C borrow 2 A rate B level C per cent 3 A burden B overheads C weight 4 A move B wire C transfer 5 A catch B earn C contract 6 A rotation B circulation C turnover 7 A mother B parent C older 8 A policy B tendency C politics 9 A slump B recession C fall 10 A state sector B governmental sector C nation sector 11 A market B competition C leadership 12 A piece B part C market share 13 A spectacular B efficiently C effective 4. Read the text. Use the words given in capitals on the right to form a word that fits in the gap in the same line. A countryacute;s 1_______ rate tells more than just the 2_______ of the population that is without work. It shows how well businesses are sustaining growth and creating jobs, and how much 3______ are spending on goods and services. Economists can look to a nationacute;s unemployment rate to determine if an economy is close to 4_______ or if 5_______a slide will continue. EMPLOY PER CENT CONSUME REBOUND FINANCE GRAMMAR 5. Choose the best answer A, B or C from the list to complete the text. Gerdau: a Brasilian success story Gerdau, the Brasilian steel maker, 1 _______ one of Latin Americaacute;s 2 ______ companies. It 3_______ productivity in its plants; it 4 _____ the price and timing of its takeovers of smaller companies right; and, most important, it 5 _______ to understand investors’ expectations. Investors want a firm that’s focused and transparent, with a simple share structure, and that’s exactly what Gerdau gives them. The only problem in the short term is the problem of success. Gerdau 6 ______ a 50% market share in its domestic market, and so it 7 ______ the attention of Cade, the monopolies authority. These days it’s 8 ______ to do business in Brazil. The government is simplifying the company-tax structure, it 9 ______ the labour market 10 ______ by changing the restrictive labour laws, and it is modernizing company law in general. 1 A is becoming B becomes C are becoming 2 A many successful B more successful C most successful 3 A is rising B raises C is raising 4 A will get B is getting C is got 5 A is beginning B begins C began 6 A approach B is approaching C approaches 7 A attract B attracts C is attracting 8 A much easy B much easier C more easier 9 A is making B makes C will make
6. Translate into Russian. 1. In the market economy supply and demand decide everything; its direct opposite is the planned economy. 2. In a planned economy a government decides what is produced, how much is produced and how and at what price it is sold. 3. In the world there is no perfect economic system. Market economies have their strengths, but they also have drawbacks. In planned economies governments can make sure that everyone can afford basic commodities. 4. Planned economies have problems with supply as it is difficult to calculate how much to produce and how high a demand to expect. People have to hoard different goods and shortages of goods become common. 5. In many countries privately-owned businesses exist alongside state-run industries, which need protection from free market competition for their development. 6. Deregulation leads to increased competition and the influence of market forces. 7. Governments may put limits on free enterprise by banning trade in various goods, preventing monopolies and protecting consumers and the environment. 7. Writing.