Microeconomics vs. Macroeconomics

1. Economic analysis is divided into two main branches: microeconomics and macroeconomics.

In microeconomics we take a close-up view of the economy by concentrating on the choices made by individual participants in the economy such as consumers, workers, business managers, and investors.

2. In macroeconomics we look at the economy from a broader perspective by considering its overall performance and the way various sectors of the economy relate to one another. We measure and evaluate the performance of the economy by the total value of annual production, the capacity of the economy to provide jobs, the changes in the purchasing power of money, and the growth of employment and output.

3.MicroeconomicsIn microeconomics we analyze how individuals choose among various courses of action by weighing the benefits and costs of alternatives available to them. In microeconomic analysis we place special emphasis on the role of prices in business and personal decisions. A major goal is to understand how the prices of particular goods and services are determined and how prices influence decisions. Because of its preoccupation with prices and trading of goods and services, microeconomics is sometimes called price theory.

4. In microeconomics we study the actions of individuals as they buy and sell in market transactions. As you know, some services, such as education and police protection, are provided by government agencies rather than being sold in markets. What are the advantages and disadvantages of alternatives to markets as a means of accomplishing the basic tasks of the economy? How do political choices influence the functions and performance of the economy? We’ll examine each of these important questions as we learn to look at the economy from the micro perspective.

5.MacroeconomicsIn macroeconomics we study changes in total national production and consumption, averages of the prices of broad groups of goods and services, and employment of workers in the economy. Macroeconomists seek to explain the causes of economic fluctuations and to suggest policies that will make the fluctuations less abrupt, with the aim of preventing excessive unemployment and rapid price increases.

6. In macroeconomics we should place special emphasis on understanding the causes of unemployment and inflation. The unemployment rate is the number of jobless workers who are actively looking for work or who have been laid off from a job, expressed as a percentage of the total labor force. Unemployment is often a major issue in congressional and presidential elections. In fact, the federal government is required by law to pursue policies that seek to keep unemployment from becoming excessively high. If such policies are to succeed, the individuals who develop them must have a keen understanding of how the economy works.

7. Inflation is another highly charged political issue. Inflation is a general yearly increase in the average level of prices for a broad spectrum of goods and services. Inflation weakens the purchasing power of money. It can create economic instability in a nation by harming the competitiveness of firms seeking to sell products in foreign markets.

VII. Дайте письменные ответы на следующие вопросы к тексту:

1. What is the difference between micro – and macroeconomics?

2. What is the main goal of microeconomic analysis?

3. Why do macroeconomists consider unemployment and inflation as two important factors of their research?

Вариант 2

I. Перепишите следующие предложения, употребляя глаголы, данные в скобках, в Present, Past или Future Simple или Continuous. Переведите предложения на русский язык.

1. For the first hundred years, the Colgate Company (to do) all its business in the United States.

2. This software program (to help) employees to assess their interests, values and skills in order to create a career development plan.

3. During medieval times trading between nations (to grow), and a new social class (to appear).

4. At the next meeting the export manager (to talk) first about the market possibilities in general and then he (to give) us some figures.

5. Currently he (to work) in the Personnel Department of a large multinational company.

II. Перепишите следующие предложения, употребляя глаголы, данные в скобках, в Present Perfect, Past Perfect или Past Simple. Переведите предложения на русский язык.

1. As a result of the company’s heavy investment in research and technology, it (to develop) already many successful products.

2. The secretary said that the client (to give) her the wrong address.

3. The Industrial Revolution (to begin) in the late 18^th century when machines (to start) to replace human workers.

4. This week there (to be) a huge increase in demand for air conditioners due to the hot weather.

5. By that time many countries already (to start) a process called deregulation.

III. Перепишите следующие предложения, употребляя глаголы, данные в скобках в Present, Past или Future Simple действительного или страдательного залога. Переведите предложения на русский язык.

1. A part-time employee usually (to work) for only a few hours a day or a few days per week.

2. Today, in many industries the concept of a narrow specialization of labour (to discuss) worldwide.

3. Almost all finished goods (to store) at least once in a warehouse before they reach a final customer.

4. In Brazil, according to the privatization program around 70 state-owned enterprises (to sell) to private investors in the early 1990s.

5. In Japan, for many years relationships between manufacturers, wholesalers and retailers (to base) on the understanding that distributors would not carry the products of competing firms.