Unit 1. What is economics?

TEXT A: What is economics?

TEXT B: What economics isn't
TEXT C: Micro, macro and fantasy economics
BUSINESS COMMUNICATION: Introductions
GRAMMAR: Present Tenses. The Present Simple and the Present Continuous Tenses

The ideas of economists and political philosophers, both when they are right and when they
are wrong, are more powerful than is commonly understood.
John Maynard Keynes (1883 – 1946),
a British economist

LEAD-IN
1. The dictionary defines economics as “the study of the production of wealth and the
consumption of goods and services in a society”. List five economic issues relating to
production and consumption that your national or local government has to deal with
today.
2. Why do you think everyone should understand basic economics?
PRE-TEXT EXERCISES

A. Reading drills
Ex.1. Practice reading the following words.
tion [ʃn]: action, nation, station, dictation, translation, position, condition
ssion, ssian [ʃ(ə)n]: session, expression, impression, permission, Prussian, Russian
cia [ʃə], cean [ʃ(ə)n]: ocean, special, especially, official, politician, musician, social
a [a:] перед ss, sk, sp, st, ns, nd, nt, ft, th, nce: class, glass, grass, pass; after, craft, raft, daft;
ask, task, answer, father, rather, bath, path; fast, faster, last, past, master, castle, can't; gasp,
grasp; command, demand, plant, grant; chance, dance, glance, France.

Ex.2. Read the words in the following groups. Pay attention to the word stress.
a) words with the stress on the first syllable:
answer, numbers, household, human, market, concept, actually, services, product, produce (n),
surplus, previous, limit, object (n), purchase, action, labour, labourer, capital, enterprise, timber,
profit, business, scarcity, satisfy, constitute, income, option, benefit, equity, issue;
b) words withthe stress on the second syllable:
economy, economist, accept, resources, statistics, specifically, behaviour, endeavour, defence,
invisible, amount, variety, sufficient, incentive, produce (v), abandon, interpret, production,
tentative, explain, decision, desire, consume, consumer, consumption, activity, object (v),
attempt, perform, except, combine, reward, machinery, available, unlimited;
c) polysyllabic words with the main and secondary stress:
administration, availability, economics, economic, economical, economically, complicated,
constitution, constitutional, constitutionally, publication, comprehensive, influential, insufficient,
definition, distribution, individual, satisfaction, satisfactory, unemployment, microeconomics,
macroeconomics.

В. Word formation with the help of suffixes

Ex.3. Explain the difference between the words in groups.

a) act, acting, active, activity, action;
b) consume, consumer, consumption, consumerism;
c) economy, economics, economic, economical, economically;
d) satisfy, satisfaction, satisfactory;
e) product, produce, produce, productive, productivity, production.

Ex.4. Make up nouns as in the model:

a) from the verbs
Model: verb + -ment → noun
e.g. govern - government
Enjoy, employ, develop, accomplish, encourage, punish, fulfil, equip, agree, adjust,
acknowledge, commit, enrich, establish, move, judge, measure, recruit, manage;

b) from the adjectives

Model: adjective + -ity → noun
e.g. reliable - reliability
Possible, probable, responsible, familiar, complex, hilarious, curious, prosperous, punctual, real,
senior, special, able, public, similar, sensitive, active, minor, scarce.

Ex.5. Make up
a) adjectives from the following nouns:
Model: noun + -ant → adjective
e.g.assistance (n) → assistant (adj)
Distance, significance, importance, resistance, brilliance, consultancy, dependence;

b) adjectives from the verbs:

Model: verb + -less → adjective
e.g. hope (v) → hopeless (adj)
End, use, care, aim, thank, fear, harm, rest, mind, brake, doubt, dream, form, love.

Text A: What is Economics?

Active Vocabulary
 Key terms: economics, social science, management of a household, free market, productive
resources, information resources, rational human behaviour, needs and wants, surplus, market,
incentives, scarcity, factors of production, economic activity, opportunity cost, minimizing
costs, inflation, consumer, microeconomics, macroeconomics, unemployment, gross domestic
product, taxation, government expenditures, trade-offs, "invisible hand", competing uses,
variety of goods and services, production, distribution and consumption of goods and services,
satisfy wants, needs and desires, expenditures.
Other words and expressions: to browse, to constitute, complicated, endeavour, to abandon,
action, activity, available, to satisfy, benefit, to allocate, to determine, a wide range, required,
demanded, to interact, phenomena.
Linking words and phrases: hence, more specifically, such as, except for, thus, therefore,
though, in this connection, in order to.

There's no one universally accepted answer to the question "What is economics?" Browsing
different information resources, you will find various answers to that question. Economics may
appear to be the study of complicated tables and charts, statistics and numbers, but, more
specifically, it is the study of what constitutes rational human behaviour in the endeavour to
fulfil needs and wants.
The term economics comes from the Ancient Greek oikonomia, the word composed of oikos
(“house”) and nomos ( “custom” or “law”), hence, “rules of the house (hold)”. Modern
economics began in 1776, with the publication of Adam Smith's “Wealth of Nations”. This was
the first comprehensive defence of the free market, and continues to be an influential work to this
day. Central to the work was the concept of the “invisible hand”, the idea that the market, while
appearing chaotic, is actually guided to produce the right amount and variety of goods and
services. If there are insufficient goods, there will be great economic incentives to produce
more; if there are surplus goods, there will be an economic incentive to produce less or different
types of goods. Smith's work was so influential that previous tentative schools of economics
were abandoned after its publication.
Modern definition of economics interprets it as a social science, which analyses the production,
distribution, and consumption of goods and services, studies human behaviour and explains how
individuals and groups make decisions with limited resources as to best satisfy their wants,
needs and desires.
Wants and needs refer to people’s desires to consume certain goods and services. In economic
terms, a good is a physical object that can be purchased. A service is an action or activity done
for others for a fee. The term product is often used to refer to both goods and services.
Economics often uses such categories as factors of production, which are basic elements used
to produce goods and services. In essence, land, labour, capital and entrepreneurship are main
productive resources. Land represents all natural resources, such as timber and gold used in the
production of a good. Labour is all of the work that labourers and workers perform at all levels
of an organisation, except for the entrepreneur. The entrepreneur is an individual who takes an
idea and attempts to make an economic profit from it by combining all other factors of
production. The entrepreneur also takes on all of the risks and rewards of the business. The
capital is all of the tools and machinery used to produce a good or service.
The need for making choices arises from the problem of scarcity. Scarcity exists because
people’s wants and needs are greater than the resources available to satisfy them. From here it
can be easily understood that scarcity is the fundamental economic problem of having seemingly
unlimited human needs and wants in the world of limited resources. Scarcity means that people
want more than is available. Thus, people must choose how best to use their available resources
to satisfy the greatest number of wants and needs. Scarcity limits us both as individuals and as a
society. As individuals, limited income (time or ability) keeps us from doing and having all that
we might like. As a society, limited resources (such as manpower, machinery, and natural
resources) fix a maximum on the amount of goods and services that can be produced. Economics
is sometimes called the study of scarcity because economic activity would not exist if scarcity
did not force people to make choices. People must choose which of their desires they will satisfy
and which they will leave unsatisfied.
When there is scarcity and choice, there are costs. The cost of any choice is the option or options
that a person gives up. Most of economics is based on the simple idea that people make choices
by comparing the benefits of options of different goods and choosing the one with the highest
benefit. The opportunity cost of a particular choice is the satisfaction that would have been
derived from the next best alternative foregone. It is the cost of any activity measured in terms of
the value of the best alternative that is not chosen.
Economics is the study of how people choose to allocate scarce resources to satisfy their
unlimited wants. In the situation of scarce resources and unlimited human needs, economics has
a very important task of minimizing costs while producing different goods and services. The
main problem in economics is the question of allocating scarce resources between competing
uses. In this connection very significant decisions must be made about three basic economic
questions: What to produce? For whom to produce? and How to produce?
What products and services should be produced? In order to answer this question we need to
determine the needs of individual consumers as well as the economy in general. A wide range of
goods and services needs to be produced in order to cater for many and varied needs of
consumers. The demand from consumers and available resources will normally determine what
products and services to produce.
How much of each product and service should be produced? The amount of each product to
produce will be determined by the demand for the various products as well as the availability of
the resources required to produce those goods and services.
For whom should goods and services be produced? The demand for goods and services will
largely determine for whom they will be produced. Goods are therefore produced for those
consumers who demand the goods, and have the ability to pay for the goods demanded.
Two main branches of economics are: microeconomics and macroeconomics. Microeconomics
examines the actions of individuals and firms, and how they interact. Macroeconomics studies
the economy at large, examining such phenomena as inflation, unemployment and gross
domestic product.
No aspect of life is untouched by economics - though it can be hard to convey its central
importance in human lives. Economics has things to say, and to teach, about the importance of
education, about taxation and government expenditures, about why some companies succeed and
others go bust. It teaches why some countries grow rapidly and others struggle to grow at all.

Language notes:
great economic incentives – великі економічні стимули;
surplus goods – надлишкові товари;
tentative schools of economics – експериментальні економічні школи;
opportunity cost – альтернативний вибір;
economic activity would not exist if scarcity did not force people to make choices – не існувало
б господарської діяльності, якби дефіцит не змушував людей робити вибір;
to take risks and rewards – йти на ризик і заробляти винагороди;
to go bust – збанкрутувати, розоритися;
rational judgments – обґрунтовані судження;
trade-off –альтернатива, компроміс.

VOCABULARY FOCUS

Ex.1. Find the English equivalents in the text.

Економічна діяльність; дефіцит; обмежені ресурси; управління господарством; вивчати
складні таблиці та графіки; недостатньо товарів; виробляти більше; сучасне визначення
економіки; бажання споживати певні товари та послуги; ризики та винагороди бізнесу;
задовольняти необмежені людські потреби та бажання; розподіл дефіцитних ресурсів;
широкий асортимент товарів та послуг; попит на різну продукцію; основні питання, що
впливають на нас.

Ex.2. Give Ukrainian equivalents of the following words and phrases.

To allocate scarce resources between competing uses; government expenditures; demand from
consumers; rational human behaviour in the endeavour to fulfil needs and wants; the first
comprehensive defence of the free market; an economic incentive to produce less or different
types of goods; production, distribution, and consumption of goods and services; to produce the
right amount and variety of goods and services; inflation; unemployment; gross domestic
product; taxation; the best alternative foregone; minimizing costs; available resources; unlimited
human needs and wants; force people to make choices; to satisfy wants, needs, and desires; to
consume certain goods and services.

Ex.3. Give three forms of the following verbs. Find the sentences with these verbs in the
text.
Find, come, begin, be, do, take, make, arise, keep, leave, give, choose, have, teach, say, go,
grow.

Ex.4. Match the words on the left with the definitions on the right.
1 scarcity a the study of the way in which money and goods are produced and
used
2 consumer b a continuing increase in prices, or the rate at which prices increase
3 economics c a subject or problem that is often discussed or argued about,
especially a social or political matter that affects the interests of a
lot of people
4 demand d a situation in which there is not enough of something
5 distribution e the number of people in a particular country or area who cannot
get a job
6 inflation F a balance between two opposing things that you are willing to
accept in order to achieve something
7 unemployment g someone who buys and uses products and services
8 issue h all the people who live together in one house
9 costs I an advantage, improvement, or help that you get from something
10 GDP J the need or desire that people have for particular goods and
services
11 trade-off k the money that you must regularly spend in order to run a
business, a home, a car, etc
12 surplus L the act of sharing things among a large group of people in a
planned way
13 benefit m the total value of all goods and services produced in a country in
one year, except for income received from abroad
14 income n an amount of something that is more than what is needed or used
15 household o the money that you earn from your work or that you receive from
investments, the government, etc

Ex.5. Make up verb + noun collocations (there may be several variants).

to satisfy scarce resources
to make economics
 to allocate answers
to provide wants and needs
to produce tools
to determine products
to find decisions
to study demand for goods
to design goods and services
to purchase rational judgements

Ex.6. Choose an appropriate word or phrase to complete the following sentences.

Economic profit, factors of production, fee, goods and services, Nations, needs and wants, option
or options, products and services, resources, unlimited wants.

1. Economics is the study of what constitutes rational human behaviour in the endeavour to
fulfil _________.
2. Modern economics began in 1776, with the publication of Adam Smith's Wealth of
_________.
3. Modern definition of economics interprets it as the social science, which analyzes the
production, distribution, and consumption of _________.
4. A service is an action or activity done for others for a _________.
5. _________are basic elements used to produce goods and services.
6. The entrepreneur is an individual who takes an idea and attempts to make an
_________from it by combining all other factors of production.
7. Scarcity exists because people’s wants and needs are greater than the _________available
to satisfy them.
8. The cost of any choice is the _________that a person gives up.
9. Economics is the study of how people choose to allocate scarce resources to satisfy their
_________.
10. The demand from consumers and available resources will normally determine what
_________to produce.

Ex.7. Fill in the gaps with appropriate prepositions or adverbs.

1. Browsing different information resources, you will find various answers ______
that question.
2. Economics is the study ______ what constitutes rational human behaviour.
3. Modern economics began ______ 1776.
4. Central ______ the Adam Smith’s Wealth of Nations was the concept ______ the
“invisible hand”.
5. If there are surplus goods, there will be an economic incentive to produce ______
or different types of goods.
6. Modern definition ______ economics interprets it as a social science.
7. A service is an action or activity done ______ others ______ a fee.
8. The need ______ making choices arises ______ the problem of scarcity.
9. Scarcity means that people want ______ than is available.
10. The cost ______ choice is the option or options that a person gives up.
11. Most ______ economics is based ______ the simple idea that people make choices.
12. Economics has a very important task ______ minimizing costs ______ producing
different goods and services.
13. Very significant decisions must be made _____three basic economic questions.
14. The demand _____ consumers and available resources will normally determine
what products and services to produce.
15. Goods are produced ______ those consumers who demand the goods, and have the
ability to pay ______ the goods demanded.

Ex.8. Combine two parts logically to make complete sentences.

1 Economics may appear to be the study of a the production, distribution, and
complicated consumption of goods and services.
2 Economics is the study of what constitutes b allocating scarce resources between
rational human competing uses.
3 Modern economics began in 1776, with the c limited resources as to best satisfy their
wants, needs, and desires.
4 Modern definition of economics interprets d an economic profit from it by
it as the social science, which analyzes combining all other factors of
production.
5 Economics studies human behaviour and e the benefits of options of different
explains how individuals and groups make goods and choosing the one with the
decisions with highest benefit.
6 Economics is called the study of scarcity f scarce resources to satisfy their
because economic activity unlimited wants.
7 The entrepreneur is an individual who takes g publication of Adam Smith's Wealth of
an idea and attempts to make Nations.
8 The main problem in economics is the h tables and charts, statistics and
question of numbers.
9 Most of economics is based on the simple i behaviour in the endeavour to fulfil
idea that people make choices by needs and wants.
comparing
10 Economics is the study of how people j would not exist if scarcity did not force
choose to allocate people to make choices.

Ex.9. Look through the text again and replace the words/phrases in italics with similar
ones.
1. The term “economics” comes from the Ancient Greek “oikonomia”, the word composed
of “oikos” ("house") and “nomos” ( “custom” or “law”), thus, “rules of the house(hold)”.
2. Wants and needs refer to people’s wants to consume certain goods and services.
3. In economic terms, a good is a physical object that can be bought.
4. Economics often uses such categories as factors of production, which are basic elements
used to manufacture goods and services.
5. Scarcity exists because people’s wants and needs are greater than the resources available
to meet them.
6. The main problem in economics is the question of allocating limited resources between
competing uses.
7. That’s why very significant decisions must be made about three basic economic
questions: What to produce? For whom to produce? and How to produce?
8. For the purpose of answering this question we need to determine the needs of individual
consumers as well as the economy in general.
9. Goods are thus produced for those consumers who demand the goods, and have the
ability to pay for the goods demanded.
10. No aspect of life is untouched by economics – despite the fact that it can be hard to
convey its central importance in human lives.

Ex.10. Translate into English.

 1. Економіка - це наука, що вивчає закони і категорії суспільного виробництва,
розподілу, обміну і споживання, методи і форми організації та управління
виробництвом.
2. Вивчення кожної науки починається з визначення її предмета, цілей, і
методів.
3. Вперше поняття "економіка" ввів грецький мислитель Арістотель (III ст. до
н. е.).
4. Арістотель пояснив суть економіки як науки про домашнє господарство:
грецьке "ойкос" означає дім, господарство, "номос" - вчення, закон.
5. Проте економіка як наука, як систематизоване знання про суть
господарської діяльності виникла лише в ХVII-ХVIII ст., тобто в період
капіталізму.
6. Щоб визначити предмет економіки, необхідно розкрити дві найважливіші
категорії: "економіка" та "економічна теорія".
7. Слід зауважити, що теорія дає уявлення про дійсність як систему.
8. Економіка – це наука про виробничу діяльність та обмін її результатами між
людьми.
9. Економіка вивчає рух економічного життя - тенденції в розвитку цін,
виробництва, безробіття тощо.
10. Економічна наука допомагає виробити політику, за якої уряд може впливати
на економічне життя.
11. Економіка - наука вибору, яка вивчає, як люди вибирають спосіб
використання обмежених виробничих ресурсів (землі, праці, обладнання,
технічних знань) для виготовлення різних товарів і розподілу їх між різними
членами суспільства.
12. Економіка вивчає, яким чином людина організує виробництво і споживання.
13. Економіка вивчає гроші, капітал, його форми й багатство.
14. Економічна освіта кадрів – це процес овoлодіння економічними знаннями,
уміннями і навичкамита підготовка фахівців з вищою економічною освітою.
15. Економічна освіта кадрів – це також підвищення рівня економічних знань
керівних господарських та інженерно-технічних працівників.

LANGUAGE SKILLS

Ex.11. Ask questions to which the following sentences may be answers.

1. There's no one universally accepted answer.
2. In 1776, with the publication of Adam Smith's Wealth of Nations.
3. The first comprehensive defence of the free market.
4. Because previous tentative schools of economics were abandoned.
5. They are land, labour, capital and entrepreneurship.
6. It arises from the problem of scarcity.
7. Because people want more than is available.
8. Limited income (time or ability) keeps us from doing and having all that we might like.
9. The option or options that a person gives up.
10. The opportunity cost of a particular choice.
11. What to produce? For whom to produce? How to produce?
12. To determine the needs of individual consumers.
13. In order to cater for many and varied needs of consumers.
14. The demand from consumers and available resources.
 15. By the demand for the various products as well as the availability of the resources
required to produce those goods and services.

Ex.12. Answer the following questions.

1. How can you answer the question “What is economics?”
2. What is the central concept of Adam Smith's Wealth of Nations?
3. What is the difference between a good and a service?
4. Which factors of production are there?
5. What does land represent?
6. What kind of work do labourers perform?
7. Who can be called an entrepreneur?
8. What is capital?
9. Why is economics sometimes called the study of scarcity?
10. What is the cost of any choice?
11. What is the task of economics in the situation of scarce resources and unlimited human
needs?
12. Name the main problem in economics.
13. What are the main branches of economics?
14. Explain the difference between microeconomics and macroeconomics.
15. What does economics teach, provide and help to understand?

Ex. 13. Make a presentation of the topic “What is economics”.

WRITING

Ex.14. Write a plan for a summary of Text A.

Ex. 15. Write a brief summary (25-30 sentences) of Text A.

Ex. 16. Write an essay (100 – 150 words) about:

- the problem of scarcity and opportunity cost.

DISCUSSION POINTS

Ex.17. Answer the following questions.

1. What is economics?
2. What is scarcity? Give some examples of rich people and poor people facing scarcity.
3. Why does scarcity force us to make choices?
4. Why do we care about what goods and services are produced? Give some examples of
goods that you value highly and goods on which you place a low value.
5. Why do we care about how goods and services are produced? (Think about cost.)
6. Why do we care about when or where goods and services are produced?
7. Why do we care about who gets the goods and services that are produced?
8. What do we mean by the related ideas of trade-off and opportunity cost? Give some
examples of trade-offs that you have made today and of opportunity costs that you have
incurred.
9. Explain why for the economy, as a whole, expenditure equals income and the value of
production.
10. Why does unemployment occur? Is all unemployment a problem?

Ex.18. Name as many famous economists as you know. Explain their role in the development
of economic science.
Ex.19. Economics has been called “the study of scarcity and choice”. How does this relate to
your budget for the week? How does this relate to your nation’s budget?

Text B: what economics isn't

Ex.20. Scan the text below and give headlines to each paragraph.
Let's start with what economics isn't. Economics isn't a meal ticket to make lots of money in the
stock market, although economics helps you understand how stock markets and other markets
work. Economics also isn't a business degree, although economics teaches important business
skills. (1) ____________. As such, economics helps to explain the mysteries of how people and
society operate.
Economics is defined as the study of how people choose to use their scarce resources in an
attempt to satisfy their unlimited wants. (2) ____________. Think, for example, why you don't
own a Ferrari or a Porsche (if you do, congratulations). You probably can't afford to purchase
these expensive automobiles, or even if you can, this is not the best use of your money. You may
want a Ferrari, and in fact there is no prohibition against your buying a Ferrari. But you don't
have the resources - namely, money - to buy a Ferrari.
Take this one step further. Why don't you go to the movies every night, or go out dancing until 2
AM every evening? You may want to, even prefer to, but you can't because you have homework,
or a job, or both. Even if you could financially afford this lifestyle, your time is a scarce
resource. (3) ____________.
Economics builds scientific models to explain why people behave the way they do. And
economists use these models, in conjunction with their observations of the world, to analyze and
explain why things happen the way they do.
Does this sound boring? It shouldn't. (4) ____________. Even more, economics is about finding
the truth, even if the truth may go counter to what you, and most people, may intuitively believe.
As one economist put it, economics is about paradoxes, about providing answers to riddles that
are contrary to accepted opinion yet are true. Think about a few such paradoxes:
Supermodels and athletes may be better off bypassing college for professional work than by
attending college. Why? The potential income they forego by attending school is greater than the
benefit a college degree brings to a supermodel or star athlete. This is not to say that education is
bad, or supermodels can't afford college; rather, it simply says that the allocation of time is better
spent working than by attending school.
(5) ____________. Traffic jams seem to be a necessary evil, right? What if drivers needed to pay
a toll, say $1, during busy rush hours. This would certainly prevent some drivers who didn't need
to drive from driving during rush hour, and traffic congestion would lessen. In economics,
driving is a want and freeways, time, and money are resources. If we could better allocate these
resources, then we could lessen traffic.
This is what economics is all about - finding answers to problems that are not always as they
seem to be.
Why major in economics? Economics teaches valuable skills and problem-solving techniques
that will help you solve the mysteries life presents. But there's another reason. (6)
____________. In addition to academia and government, economists work in all facets of the
business world, including manufacturing, mining, banking, insurance, and retailing. Not to
mention sports, recreation, entertainment, and technology.
Why do businesses need economists? First, economists are trained to think analytically and
critically to solve complex problems. Second, and relatedly, (7) ____________, and as such
economists are trained to recognize human behaviour in relation to work, production,
distribution and consumption, the fundamental operations of most businesses.
Businesses began to hire economists in increasing numbers shortly after World War II, and the
economics profession has grown rapidly ever since. Both large and small firms hire economists.
Large firms tend to have whole divisions dedicated to economic research, with a number of
economists addressing specialized areas. Smaller firms, on the other hand, tend to hire only one
or two economists to address a number of general areas: planning, forecasting, finance, and other
duties.
(8) ____________. Economists analyze data and provide information; the manager uses this
information to make decisions. The public profile may not be there, but the power of the
information is great. This may explain why so many corporate CEOs rose to their positions
through the economics division.

Ex.21. Read the text. Choose the best sentence A-G to fill each of the gaps 1-8. Do not use
any of them more than once.
A Again, economics is about solving problems.
B Economics is a social science
C In other words, we have unlimited possibilities in life to do whatever we want, but we are
limited by the resources we have to do these things.
D Namely, jobs, and decent-paying ones at that.
E The role of the economist may differ from that of the manager.
F Traffic jams can be prevented.
G You need to spend time studying or working which prevents you from movie watching and
dancing.
H Economics, first and foremost, is a social science.

Ex.22. Read the text and decide whether the following statements are true or false. Correct
the false statements.
1. Economics helps you understand how stock markets and other markets work.
2. Economics is a business degree.
3. Economics teaches important business skills.
4. Economics helps to explain the mysteries of how people and society operate.
5. Economics is defined as the study of how people choose to use their unlimited
resources in an attempt to satisfy their scarce wants.
6. Economics builds scientific models to explain why people behave the way they
do.
7. In economics, driving is a resource and freeways, time, and money are wants.
8. Economists work in all facets of the business world, including manufacturing,
mining, banking, insurance, and retailing.
9. Economists are trained to think analytically and critically to solve complex
problems.
10. Only large firms hire economists.
11. Large firms tend to have whole divisions dedicated to economic research, with
a number of economists addressing specialised areas.

Ex.23. Read text B again and answer the following questions.

1. What is not economics?
2. How is economics defined?
3. Why does economics build scientific models?
4. How do economists use these models?
5. What is economics about?
6. Why do businesses need economists?
7. When did businesses begin to hire economists?
8. How do large and small firms hire economists?
9. What is the role of the economist?
10. What does the manager use to make decisions?
Text C: Micro, Macro and Fantasy Economics

Ex.24. Before reading

Can you anticipate what ‘fantasy economics’ is about?

Ex.25. Reading
(1) There are two branches of genuine economics, the micro and the macro, and a third and
phoney one, the fantasy economics that feeds on wishful thinking demagogy and the rantings of
pretentious charlatans. As micro and macro are tangled up in one of their periodic conflicts of
mutual misunderstanding, the hour is to the fantasy economics "new order," "need, not greed,"
"equitable distribution," "stability," and so forth. None of this rhetoric is harmless, and the
seductive apple-pie-and-motherhood language it uses makes it difficult to combat. Micro-
economics finds support in common sense, the lessons of everyday life and perhaps also in
inherited instincts that favoured genetic survival in evolutionary selection. Micro-economics
teaches that no sane man will try to increase his income by borrowing more heavily on his credit
card so that his increased consumption should stimulate consumption, fill factory order books,
and permit him to earn more by doing overtime. Yet macro-economics suggests that something
of the sort is a quite plausible sequence of events. Plausible, however, is sometimes mistaken for
necessarily true. "It all depends"; macro-economic plausibility may or may not point to correct
conclusions.
(2) When in 2000 France's socialist government reduced the "legal" work week to 35 hours the
main plea was that this will spread the available work among more people, i.e. reduce
unemployment, which of course it did not. It increased costs and caused much disruption. On the
other hand, when in 2008-2009 a large proportion of German employers reduced both the work
week and wages, the result was that German unemployment rose significantly less than that in
neighbouring countries. Could this be a negation of the French experience? It was nothing of the
sort; it was simple that other things were not equal, in one experience labour costs increased, in
the other they did not. Micro and macro are fairly unanimous that you do not increase the
demand for labour by making it more expensive. Higher unemployment pay has no direct
incidence on wage cost, because it is paid out of general tax revenue and leaves unemployment
insurance rates (a kind of payroll tax) unchanged. However, wherever the incidence of a higher
cost first hits the economy, the indirect incidence will inevitably work through to labour cost,
too.
(3) The contemporary quarrel between micro and macro rages around the sustainability of
growing government debt, the potential of the fiscal stimulus to induce growth and create jobs,
and the risks of unorthodox central banking. In all these areas, the instinctive, micro-oriented
"know-nothings" confront the educated Keynesians. The latter keep desperately trying to
hammer into the thick skulls of the former the basic blueprint of John Maynard Keynes's system.
More government spending (i.e. dissaving) generates income that is greater than the spending
itself, with part of the income being consumed and part saved to generate the saving that matches
the government dissaving. In Keynesian parlance there is the multiplier effect and it is greater
than 1. As long as there is spare capacity (unemployment) in the economy, the government ought
to go on spending more, working through the multiplier, because the extra private saving takes
care of the government dissaving and the extra consumption is, so to speak, a welcome windfall
gain. Timidly refusing to generate it is criminal waste.
(4) Fantasy economics as a study of warfare or at best a bitterly fought football game helps to
understand the self-inflicted pain most of Europe is currently suffering in the "crisis" of the euro
- a "crisis" that is increasingly looking like a quasi-permanent state of affairs. The euro replaced
national currencies in 1999 partly because it was promised to raise economic growth rates "in the
region by 5 per cent or more, and partly because it would enable Europe "to look the dollar in the
face" or, better still, to become its equal as a global reserve currency. Milton Friedman was
convinced that, failing fiscal unification, the euro experiment will collapse in a matter of months.
Instead, it is still subsisting, though it has signally failed to fulfil the promises of growth and
especially of prestige that had been made for it. It is being maintained by the Herculean efforts of
the more solvent of the member states that seem determined to throw good money after bad to
save their nearly insolvent fellow members without admitting that at least some of this money
can be regarded as already gone down the drain. The mystery is that doing this is unanimously
acclaimed as wise, constructive and necessary because it preserves the integrity of the Eurozone.
There is ominous talk of "fragilisation" and "contamination" from Greece to Ireland, Ireland to
Portugal, Portugal to Spain and so on, ending in some unspecified but catastrophic collapse.
Nobody feels the need to ask why such language is the right one to use, and why the "integrity"
of the zone and its common currency is so precious as to warrant the most painful economic and
political contortions. Heavily loaded metaphors suffice to convince us that Greece, Portugal,
Spain or Italy reverting to their own separate currencies would be a bad thing for anyone, let
alone (as is being asserted) for everyone.
(5) What is saddening is that it is not solid understanding of micro and macro theory, the
depressing history of exchange controls, fixed rates and commodity price stabilisation schemes,
not the vacuity of fantasy economics that will preserve us from these hoary panaceas, but rather
the sheer unlikelihood of reaching unanimous agreement among sovereign states on anything
substantive, however foolish it may be.

Task 1. Discuss how micro and macro are tangled up in conflicts of mutual misunderstanding.
(para.1)
Task 2. Explain why higher unemployment pay has no direct incidence on wage cost. (para.2)
Task 3. If something is constructive (para.4), is it
a) involving the use of imagination to produce new ideas or things;
b) useful and helpful, or likely to produce good results;
c) designed for building?
Task 4. What way out of the crisis does the author see? (para.5)
Task 5. What does the author mean by “hoary panaceas”? (para.5) Which of them does he focus
on in the above text?

BUSINESS COMMUNICATION

Introductions

How to Say Hello

Dolly: Hello! Hello there, how are you? Oh Hello!
Horace: You know too many people.
Dolly: Total strangers!
Horace: Then why do you greet them?
Dolly: It makes me feel good to have so many friends.
Horace: Oh, say hello for me too then.
Dolly: I already did.

Conversation Practice
Notes:
1. It is not common to use titles (Mr., Mrs., Dr., etc.) when referring to yourself. However,
it is polite to use titles with others in formal situations, unless they give you permission to
do otherwise.
Examples:
I'm Mr. Robert Smith. (Title is not necessary here.)
I'm Robert Smith. (Better.)
I'm Dr. Sampson. (Okay if you want to keep the relationship formal.)
After an introduction:
Nice to meet you, Mr. Smith.
Oh, please call me "Bob."

2. Do not use titles with first names, and do not use last names alone without titles.
Hello, Mr. Bob (Wrong!)
Hi, Bob (Okay.)
Good morning, Smith (Wrong!)
Good morning, Mrs. Smith (Correct.)

Ex.1. Do you know the other people in the class? Introduce yourself to everyone.
Good morning. My name is __________ . I am from __________ .
Listen to others introducing themselves. Say "Nice to meet you" and repeat their names. Smile
(and shake hands if appropriate).

Ex.2. When do we say Good morning? Good afternoon? Good evening?

Ex.3. Put the following sentences into the correct order to make a conversation.
Helen: Please call me Helen.
Paul: Morning, Jane. How are you?
Jane: Yes, it is. Let me introduce you … Excuse me, Mrs Anderson’. May I introduce you to
Paul Carroll?
Jane: Good morning, Paul.
Paul: Pleased to meet you, Mrs Anderson.
Jane: Fine, thanks, and you?
Paul: And please call me Paul.
Helen: How do you do?
Paul: Fine. Is that Mrs Anderson over there?

Ex.4. Read the conversation. Fill in the blanks with the question words.
Who, what, how, why, when, where.

Alex:______ do you do? My name is Alex Smith.

Peter:______ do you do? Nice to meet you. Peter Brown.
Alex: Ah! You are giving a talk on computer software.
Peter: That’s right. ______ are you from, Mr Smith?
Alex: New York.
Peter: And ______ do you work for?
Alex: Shell.
Peter: Ah, yes! You are giving a talk on transmission systems.
Alex: That’s right.
Peter: I’d like to hear it. ______ is it?
Alex: After lunch. ______ don’t you come along?
Peter: I’d like to. ______ time does it start?

Ex.5. Match the questions to the correct reply.

1 Where do you come from? a About half an hour.
2 How do you do? b Ukraine.
3 How are you? c By metro.
4 How long does it take? d KNEU.
 5 Who do you work for? e Fine, thanks, and you?
6 What business are you in? f I’m a lecturer.
7 How do you get to work? g Advertising.
8 What do you do? h How do you do?

Ex.6. Ask Peter some questions about Alex.

You: Who is that man over there?
Peter: His name is Alex Smith.
You: _______________________ ?
Peter: New York.
You: _______________________ ?
Peter: No, he is Russian, actually, but he was born in the USA.
You: _______________________ ?
Peter: Shell.
You: _______________________ ?
Peter: He’s an engineer.
You: _______________________ ?
Peter: He’s the Technical Director.

Ex.7. Practice making introductions. Introduce:

1. Two people in a formal situation.
2. Two people in an informal situation.
3. Yourself at a company reception desk.
4. Yourself to a new colleague.
5. Yourself to a foreign visitor you are meeting at the airport.

Useful language
May I introduce you to … ? … this is … How do you do? How do you do?
Do you know … ? … this is … Hello./Hi. Nice to meet you.
Good morning. My name is … I have an appointment to see …
I don’t think we’ve met. I’m …
Excuse me. Are you Ms Peterson? I’m …

Ex.8. Read the text. Some parts of the text have bееn taken out. These extracts аre given
below. Complete each gap with the appropriate extract.
Having trouble introducing yourself? While introductions come easy to the extrovert, the
introvert will go as far as feeling anxiety when surrounded by people whom they do not know.
Some tips to try: 1. Look people straight in the eyes - eye contact is important because
__________ and also shows self confidence. 2. Smile - it is important to keep a __________
(and fresh breath too). 3. Your smile is your icebreaker, it draws people to you because you will
look __________ . 4. Handshake - a firm handshake, once again, demonstrates your __________
, but be sure you don't break the other person's arm or hand. 5. Just __________ hand shake you
will definitely gain your confidence. 6. Say your name and immediately ask for theirs -
__________ - "It's a pleasure to meet you, John" or "Nice to meet you, Jane" - repeating the
person's name will help you remember their name and, again, will also show you care. 7. Have a
great conversation. Make sure you introduce yourself with both __________ . 8. Giving a
nickname is absolutely ok, but __________ is your nickname. 9. It is an awkward joke if
__________ . 10. Always give notice it's a nickname, i.e. "My name's Mike, but they
__________ . 11. You may tell a little bit of your background in order to start your
conversation.
a) like a happy, stable person
b) then repeat their name while saying
c) never appropriate to say your name
d) call me 'The Stunner'
e) it shows that you care
f) first and last names
g) you consider it a joke
h) nice, bright smile
i) a squeeze and control
j) self-confidence.

Questions for discussion

1. Express your opinion: what were business cards created for?
2. Why do you think people exchange business cards with each other?
3.Imagine you have to design a business card, how would you do it?

Ex.9. Choose the most suitable verb to complete the sentences:

May, bring, can, choose, use, show, give, forget.
1. It ______ be as simple as deciding to ______ 5 or 10 cards away every day. 2. It ______ mean
printing labels describing your current promotion, sticking them to the back of your cards, and
pinning them to bulletin boards. 3. Whatever! The point is that if you consciously figure out a
way to ______ your business cards to ______ in business, you're much less likely to ______
them. 4. Invest in a quality business card case, one that you're proud to______off and ______5.
Business card cases______ be conversation starters themselves. 6. There are so many unusual,
classic and artistic choices available to ______ from.

Ex.10. Combine two parts logically to make complete sentences.

1 Many important contacts and business card a network and exchange
exchanges can business cards.
2 The best method of keeping your cards in neat form b your new contact.
is
3 Informal meetings are one of the best times to c should wait for them to offer
their card to you first.
4 If the person you are speaking with seems interested d front counter for business
in your product or service you represent, cards to be posted.
5 When accepting a business card, have a good e business card from them.
6 Only give one business card to f your back pocket.
7 When you first meet someone, it's ok to request a g take place in the most unlikely
places.
8 If the person is of a higher position than yourself, h offer that person a business
you card.
9 Never place the card in a wallet that will be put in i a business card case.
10 Local restaurants often hang a bulletin board near the j look at it for a few seconds.

Ex.11. Read the text and translate it into Ukrainian.

Forgetting your business card is a social faux pas. "Sorry, all my business cards are at the
office..." Those could be the "famous last words" of the forgetful entrepreneur.
If you habitually find yourself without a business card, you're habitually losing money; or at least
the chance of making money. Your business card, more than any other marketing weapon in
your arsenal, is what prospects and colleagues rely upon to remind them why they should do
business with you.
Forgetting a business card is a marketing mistake of significant proportions. We're so inundated
with advertising messages that most of us learn to tune them out. Yet every time you're asked for
a business card, and sheepishly reply that you don't have one with you, you're missing an
invitation to market to someone.
Being asked for a business card is a compliment. Not having one with you at that critical
moment is subtly offensive. It puts both you and the person requesting the card in an
embarrassing situation. And it nonverbally tells your prospect that you're not quite the business
person they thought. You're not really serious about your business, or too careless and forgetful
to be entrusted with theirs.
If you're determined not to be caught cardless again, here are some tips to help you
remember:
a) Invest in new cards.
If you haven't ordered business cards within the past two years, there's a good chance that the
information or photo is out of date by now. And if your last order was for 1000 cards and there
are still 990 cards left, ask yourself why you haven't been passing them out. If it's because you
dislike the cards, pitch them and get business cards you're proud of!
b) Draft and practice a business card presentation.
Unless you're comfortable and confident when handing out your card, you won't do it. Besides,
the words and actions that accompany your business card when you give it to someone can really
cement a positive first impression.
c) Tuck a few business cards everywhere.
Your car's glove compartment. Your briefcase. Your gym bag. Your wife's purse. Next to the
front door on the table where you keep your keys. Your desk drawer. Your secretary's desk. The
pocket of your coat. Your suitcase.

A. Look at the phrases and words in italics in the text and explain what they mean.

B. Answer the following questions:

1. What tips about business cards do you find interesting?
2. How to invest in new cards?
3. To your mind, which method of remembering about cards is better?
4. How can your business card cement a positive first impression?
5. Where would you keep your business cards?

C. Complete the sentences:

1. If it's because you dislike the cards, pitch them and
____________________.
2. If you haven't ordered business cards within the past two years, there's a
good chance that
____________________________________________________.
3. Besides, the words and actions that accompany your business card when you
give it
to______________________________________________________.
4. If your last order was for 1000 cards and there are still 990 cards left, ask
yourself
______________________________________________________.
5. Forgetting your business card is __________________________________.

GRAMMAR

PRESENT TENSES
Ex.1. Find the verbs in the sentences below, define their tense forms and translate the
sentences into Ukrainian.
Model:
Every morning my grandfather reads a fresh newspaper. (Present Simple) He is reading his
favourite newspaper now. (Present Continuous) He has been reading it for half an hour.
(Present Perfect Continuous) Oh, he has read the newspaper, and is now discussing the news
with my father. (1- Present Perfect; 2 – Present Continuous)
1. The factory produces electric motors. The factory has been producing electric motors for
50 years. Recently, the factory has produced a new model. The factory is launching a
new model these days.
2. Lucy is a florist. She works for Evelyne’s. She has been working there for two years.
This week Lucy is working at the exhibition of flowers.
3. - Maggie, it’s time to go.
- Has it stopped raining?
- No, but it isn’t raining heavily.
- Paul, it has been raining all day. I don’t want to leave home and get wet.
4. - What are you watching?
- BBC weekly news.
- Do you know what is on after the news?
- A serial. This soap opera has been running for about a year. You won’t believe this; my mom
has already seen more than two hundred series.

Ex.2. Define what tense forms should be used in the following micro-situations. Refer to the
Table of Present Tenses if necessary. You don’t need to translate the sentences.
1. Алекс, ти керуєш машиною? – Ні, але я вчуся. Ось уже два тижні, як я хожу на
курси водіїв.
2. Сьюзан, де Фред? – Він в аналітичному відділі. Вони з Мaйклом з самого ранку
коректують базу даних.
3. Энтонi, м-р Райт вже підписав документи? – Ні. М-ра Райта немає на місці. Я
чекаю на нього. Між іншим, я чекаю на нього з 3-ої години.
4. Що ти шукаєш на моєму столі, Мері? – Вибач, Хелен, нашому босу знадобився
лист від М&S. Ми з Евелін шукаємо його з самого ранку.
5. Займайтесь своїми справами. Я вже віддала йому листа.
6. Дивись, Люсі знову з кимось розмовляє по телефону. Наша нова співробітниця
забагато теревенить з подружками.
7. Може, зараз вона розмовляє по справі? – Навряд, ось вже хвилин 10 як вона
обговорює з кимось колір нової сумочки або щось там ще.
8. Ви вже надрукували звіт? – Ні ще, я якраз цим займаюсь. – Єво, але ви друкуєте цю
сторінку вже цілу годину.

THE PRESENT SIMPLE TENSE

Ex.3. Write the 3rd person singular of the following verbs. Classify the verbs into three
groups as it is shown below.
Work, go, fly, destroy, do, pass, rush, buy, pay, try, sell, love, laugh, know, serve, clean, catch,
manage, agree, buy, fix, brush, kiss, study, finish, wash, copy, watch, stay, wash, write, read,
drive

+s works, destroys,
+es goes,

+ies flies,
Ex.4. Put the verbs into three groups according to the reading rules and read them.
Start, begin, stop, stay, finish, close, open, make, catch, copy, say, like, put, miss, manage, mix,
teach, type, try, laugh, fly, freeze, dry, crash, pass, push, lose, drop, fall, rise, save, wish,
change

[s] – starts, _________________________________________________________

[z] – begins, ________________________________________________________
[iz] – finishes, ______________________________________________________

Ex.5. Write and read the he/she/it forms.

1. I take – he takes
2. I give – he _________
3. we watch – he _________
4. we buy – she _________
5. you repair – she _________
6. you work – she _________
7. they cost – it _________
8. they close – it _________
9. I have all the necessary data on computer. - He _________________________.
10. Banks open at 9 a.m. - This bank ____________________________________.
11. You often leave a message on the answer phone. -Your friend _____________.
12. You look so much like your mum. - Susan ____________________________.
13. You actually do nothing on your day off. - She _________________________.
14. They spend a lot of time driving. - Michael ____________________________.

Ex.6. Read and write the opposite (positive or negative).

1. I understand. – I don’t understand.
2. Fred doesn’t smoke. – He smokes.
3. Paula doesn’t live in Rome. – She ____________________.
4. They all know. – _______________________________.
5. Miss Crown doesn’t like it. – ________________________.
6. Samantha loves you. – ___________________________.
7. You are right. – ______________________________.
8. He is married. – _____________________________.
9. We don’t use it. – ______________________________.
10. It happens very often. – ____________________________.
11. I don’t work for a big company. – ____________________.
12. It costs a lot of money. – _________________________.
13. David doesn’t speak English. – _____________________.
14. Jill and Dick usually wear jeans. – ______________________.
15. The shop doesn’t work on Sunday. – ___________________.

Ex.7. Choose the correct variant.

My sister Floy and I are twins, but we are very different. Floy love/loves classical music, but I
like/likes dance music. She usually get/gets up very early, and I hate/hates getting up early. On
Sundays, I usually wake /wakes up at about 11. Floy is a vegetarian, she never eat/eats meat. As
for me, I eat/eats meat, fish, vegetables, and everything tasty. I often wear/wear jeans, but my
sister don’t/doesn’t wear jeans at all. But we both like/likes dancing, using the Internet and a lot
of other interesting things.

Ex.8. Put the verbs in brackets into the Present Simple.

 1. Angela _________ (work) in a bank
2. It _________ (take) her about an hour to get there.
3. My sister _________ (like) her job but she _________ (not like) to get up early in the
morning.
4. Sometimes she _________ (oversleep) and _________ (miss) her bus.
5. So she _________ (try) to catch a taxi in order not to be late for work.
6. My mom _________ (say) it _________ (be) very unreasonable and even stupid of her
to go to work by taxi.
7. Today ________ (be) my day off. I never _________ (stay) at home on Sundays.
8. But it _________ (look) like rain. You know, it often _________ (rain) here in
September.
9. I _________ (not feel) like going out in such weather. Instead, I think I’ll watch a
Eurovision Song Contest on TV. It _________ (start) in two hours.
10. Whatever the weather, Angela and her friends usually _________ (travel) somewhere.

Ex.9. Add suitable question tags to the following sentences. Read them with the correct
intonation at the end of the tag to show that you are asking if something is true (1-7) and
that you are only inviting the listener to agree with you (8-13).
Model: She doesn’t often agree with us, does she?
You are not really asking a question, you are only inviting the listener to agree with you. So your
voice goes down at the end of the tag.
I am late, aren’t I?
You are asking if you’re late. So the voice goes up.

1. It’s a lovely day today, _________? – Yes, it’s absolutely wonderful.

2. I hear you speak fluent French, ________ .
3. There is something wrong, __________.
4. She is our new secretary, ________.
5. You know my telephone number, _________ .
6. You remember my address, __________.
7. He finishes work at 6.00, _________.
8. She is busy, _________.
9. It’s cold, _______.
10. The meeting is at three o’clock, _________.
11. These figures don’t astonish our boss, _________.
12. Jack enjoys fast driving, _________.
13. They don’t work at weekend, _________ .
14. She doesn’t care about him, ________.

Ex.10. Fill in the gaps with the correct auxiliary verb to complete the song.
Love Song
… she love him? Yes, she …
… she happy? Yes, she …
… he know it? Yes, he … Yes, he knows it.
… he love her? Yes, he …
… he happy? Yes, he …
…she know it? Yes, she … Yes, she knows it.
… they happy? Yes, they …
... they lucky? Yes, they ...
... they know it? Yes, they ... Yes, they know it.

Ex.11. Complete the questions.

 A few months ago Derek bought a second-hand Mustang. The car was cheap, and he was happy.
Unfortunately, the car often breaks down. His friend Ron is a mechanic. He does not like the car
but he always helps him to repair it.
1. What _________ Derek’s car like?
2. His car often breaks down, _________ it?
3. Does his car _________ ?
4. Does his car _________ often or only rarely?
5. Why _________it break down?
6. Who _________ him to repair the car?
7. _________ Ron a sales manager or a mechanic?
8. Ron doesn’t like this car, _________ he?
9. How often _________ Ron _________ him to repair the car?
10. _________ you think Derek is happy with his car?

Ex.12. Match the questions with the answers.

1. Do you work or study, or both? a. I am a student, and I also work part time.
2. Where do you study? b. Actually, it doesn’t matter. I just like good
3. You are interested in films, though I hardly ever watch horror films.
economics, aren’t you? c. I usually go out.
4. What is your job? d. No, only three days a week.
5. Do you work every day? e. No, I live in a hostel. My parents live in
6. Is it far from your home? another city.
7. Do you live with your parents? f. KNEU. I want to be a specialist in marketing.
8. What do you do in the g. I’m an advertising agent.
evening? h. About twice a month.
9. How often do you go to the i. Yes, I am.
cinema? j. No, I usually walk to work.
10. What films do you prefer:
comedies, romantic films,
thrillers or horror films?

Ex.13. Alice is at a job interview at the moment.

a) Make up questions the interviewer may ask her. Here are some prompts to help
you.
Model: why/ want this job → Why do you want this job?

1. have any experience in this kind of work

2. what/ foreign languages/ speak
3. know/ how to send a fax
4. have any computer skills
5. what/ your strengths and weaknesses
6. make decisions quickly and independently
7. feel comfortable meeting new people
8. can/ work under pressure
9. why/ you think/ you are the right person for this job
10. have any questions you’d like to ask us

b) Now formulate questions Alice is likely to ask the interviewer.

1. offer/ you/ a training programme / a social package
2. there are/ any promotion prospects
3. how many/ people/ work in this department
4. they/ work overtime/ very often
 5. when/ the job/ start
6. what/ the salary scale
7. how long/ the probation (випробний термін)

Ex.14. Work in pairs and try to improvise an interview of your own. You can use some of
the questions in Exercise 6. Think about answers.

Ex.15. Open the brackets and put the time expressions in the right place. The first two
sentences have been done for you as an example.
1. Don’t call him. You know he is very busy at work. (always) – He is always very busy at
work.
2. They give me a welcome (always) when I go there. – They always give me a welcome
when I go there.
3. I have a cup of green tea in the morning. (usually) – _____________________
4. My brother drinks coffee. (always) – _________________________________
5. He doesn’t take sugar in his coffee. (usually) – __________________________
6. Oliver is a manager. He gets to work by 9. (normally) – ___________________
7. He drives to the office. (generally) – __________________________________
8. He is late for work (never) but he stays at the office until late in the evening. (often) –
________________________________________________________
9. Does he travel on business? – Yes, he does. (often) – ____________________
No, he does. (never) – ____________________
10. Psychologists say that people who have red cars drive fast and aggressively.
(usually) – _______________________________________________________

Ex.16. Complete the following proverbs and sayings inserting often, always or never in the
right place. Match the proverbs with the Ukrainian equivalents. Give your own
interpretation of them.
1. The morning sun lasts a day.
2. Lost time is found again.
3. The best is the enemy of the good.
4. The customer is right.
Не можна повернути втрачений час. Клієнт завжди правий. Ніщо не є вічним під місяцем.
Краще часто є ворогом хорошого.

Ex.17. Correct the mistakes if there are any.

1. Everyone ask for advice, but few listen.
2. Mother – the bank where we deposit our hurts and worries.
3. Our boss asks us often to work overtime.
4. I am usually start work at half past eight.
5. Nobody doesn’t work at this desk.
6. Do you and Sally go often to the cinema?
7. Your sister likes comedies and romantic films, isn’t she?
8. Does your brother always drive so fast?
9. She is often goes to the park on Sundays.
10. How often you visit your relatives in Vienna?
11. It is rarely raining in Kuwait.
12. What does this sign means?
13. Excuse me, what time is Flight 757 from Warsaw arrive?
14. The moon is turn round the earth every 28 days.
15. Luckily I’m having a friend who speaks Spanish.
Ex.18. Translate into English.
1. Фіоно, це твій брат на світлині?
2. Так, це Семен, а це його партнери; спеціалісти з Німеччини.
3. Семен – бізнесмен. Він часто їздить у відрядження до Німеччини.
4. Він розмовляє німецькою? – Так, досить гарно.
5. Семен читає книги в оригіналі, іноді він дивиться фільми німецькою.
6. Хелен, а ти володієш якою-небудь іноземною мовою? – Так, розмовляю
іспанською, тільки трохи.
7. У вас є уроки іспанської в університеті?
8. Так, двічі на тиждень. Крім того, по понеділках і четвергах я ходжу на курси
іспанської (take a Spanish course).
9. Я теж хочу вивчати іспанську.
10. Чому б тобі не приєднатися до мене і не розпочати навчання на курсах?

THE PRESENT CONTINUOUS TENSE

Ex.19. Add –ing to the verbs. Make spelling changes where necessary.
A.
hope – hoping hop – hopping
give – sit –
argue – plan –
use – swim –
change – rub –
note – put –

B.
refer – referring
begin –
control –
omit –
upset –
but:
open -

C.
copy – copying tie – tying
study – lie –
fly - die -
employ –
buy –

Ex.20. Add –ing to the verbs in these sentences.

1. Where are you _________ ? (go)
2. I’m _________ to catch a taxi. (try)
3. He is _________ of thirst. (die)
4. I’m coming. I’m just _________ on my shoes. (put)
5. Nellie is _________ the contract at the moment. (copy)
6. He is _________ the process. (control)
7. I can’t believe a word. You’re always _________ (lie).
8. Why are you _________ important details? (omit)
9. Listen to him! He is _________ sense. (talk)
10. We _________ to make some renovation in the house next year. (plan)
Ex.21. Read the following sentences and match them with a, b, с, d, e. Explain the use of the
Present Continuous in every case. Translate the sentences.
a - actions taking place now, at the moment of speaking;
b - temporary actions or situations happening around now;
c - actions which happen too often and we want to express our annoyance or criticism;
d. - actions which we have planned and arranged to do in the near future;
e. - changing or developing situations

1. Don’t rush me. I’m doing it as fast as I can.

2. We are moving into our new flat next Friday.
3. This actor.... I’m always forgetting his name.
4. Why are you packing the suitcase? – I’m helping Paul. He’s flying to
Paris tomorrow morning.
5. Nowadays, it seems everything is changing in the world. Even the
climate is getting warmer.
6. Steve is still in the office. He is working so hard these days.
7. What time are your parents arriving? – At 9.30.
8. You are never happy. You are always complaining about something.
9. Catherine, I hear you are looking for a new job, aren’t you?
10. The economic situation in the country is bad and it is getting worse and
worse.
11. We are attending a seminar on Wednesday.

Ex.22. Read the following description of one morning in the life of Gregory and the way he
is getting to work. Choose the correct tense form to complete the sentences.
1. It is 8 o’clock in the morning. Gregory drives/is driving to the furniture factory.
2. His trip usually takes/is taking 25 minutes. This morning it takes/is taking much
longer, because workers repair/are repairing the highway.
3. So Gregory has to use Larson Road. He usually does not use/is not using Larson
Road.
4. Normally, he takes/is taking M 25.
5. Traffic always moves/is moving faster on this road.
6. Today, the weather slows down/is slowing down the traffic.
7. It rains/is raining heavily, and the roads are slippery.
8. Gregory doesn’t like/is not liking to drive in the rain.
9. He is a careful driver, and he always drives/is driving slowly when the roads are
wet.
10. The radio in his car is on, and Gregory listens/is listening to the traffic report.
11. He always listens/is listening to the radio on his way to work.
12. The announcer describes/is describing an accident on Larson Road.
13. Gregory doesn’t want/is not wanting to be late for work, but there is nothing he can
do about the traffic conditions.
14. Cars actually don’t move/are not moving, and he gets/is getting more and more
nervous.
15. He understands/is understanding that it isn’t the best idea to drive to work while
the main road is under repair.

Ex.23. Match two parts of the sentences in the box to make up logical sentences describing
people’s criticism, annoyance or surprise.
BEGINNING ENDING
1. You are always interrupting me a) fault with whatever I do?
 2. Boys at school are always bullying Sherry b) to buy her a red Ferrari.
because of c) her red curly hair. She refuses to go to
3. My wife is always nagging me school.
4. Alan’s mom is always criticizing d) Alice Marshal in the supermarket.
5. It’s so strange. I’m always meeting e) when I’m talking.
6. Mary says she wants to lose weight, but f) with my brother. His wife doesn’t like it.
she is always eating g) silly questions.
7. I don’t want to invite Helen. She is h) something between having meals.
always flirting i) me and the way we live.
8. Why are you always finding
9. You’re always asking me

Ex.24. In these dialogues, finish the replies using the construction ‘be always + –ing’.
Model: - I’m afraid I’ve lost my glasses again.
- Oh no, not again! You’re always losing your glasses, Granny.

1. - Phil, have you paid the phone bill?

- Sorry, Sue, I’ve completely forgotten.
- You ________________________________________________.

2. - Look, Nick! You’ve made the same mistake again.

- My god! I ____________________________________________.

3. - Lucy, we can’t go to Bristol today. Our car has broken down again.
- This car is absolutely useless! It ___________________________.

4. - Why are you laughing at our new manager?

- Because he ______________________________ (forget my name).

5. - I’ve no patience with Betty.

- Why?
- Because she __________________________ (talk only about herself).

6. - And I have no patience with Nick.

- You? Why?
- Because he ______________ (boast of his great sporting achievements).

7. - Pete, the teacher is angry with you.

- Is she really? Why?
- Because you _____________________ (cheat in tests).

8. - Lucy, stop nagging!

- It’s so annoying! You ______________(grumble at me).

9.- I’m going to sell my laptop.

- Are you really? Why?
- Because something _______________ (go wrong with it).

Ex.25. Make up dialogues using the words and expressions in the box. Refer to the first
dialogue as a pattern.
 DVD get on my nerves
fridge get out of order
record player make a strange noise
mobile phone let me down

1. - I’m going to sell my car.

- Are you really? Why? It isn’t old.
- Because something’s always going wrong with it.
- In that case you’d better get rid of it.
2. - I’m going to sell my notebook.
- ______________________________
- Because it’s always ______________
- _______________________________
3 - I’m going to sell my ______________
- Are you really? Why?
- _______________________________
- _______________________________
4. - I’m going ______________________
- ________________________________
- ________________________________
- ________________________________
5. - I’m _____________________________

Ex.26. Correct the mistakes if there are any.

1. Look! They try to open the door of your car.
2. We are needing an answer from you before Thursday.
3. The taxi is arriving in 15 minutes.
4. Excuse me, what platform is the London train leaving?
5. It’s getting hotter and hotter these days.
6. I’m not believing a word he’s saying.
7. I think about buying a new car soon. - Why? I am thinking your car is fine. You don’t
need a new one.
8. Why are you smell the fish? - I think it is smelling a bit strange.
9. Nellie can’t come to the phone, she has a shower now.
10. I can’t find the TV programme. Rebecca, when is this film starting?
11. The technician mends the photocopier so you can’t use it right now.
12. I’m studying a lot now because we having exams next week.
13. She always leaving her computer on.
14. I make coffee. Would you like some?
15. Attention! Flight BA 125 to Stockholm is boarding now. All passengers please go to
Gate 20.

Ex.27. Translate into English.

1. Я знаю, ви переїжджаєте до нового офісу днями.
2. Я телефоную, щоб дізнатися вашу нову адресу.
3. Завтра я зустрічаюсь з менеджером. Я думаю обговорити з ним це питання.
4. Здається, у них зараз проблеми з замовленнями.
5. Заспокойтесь (calm down), Шері. Ти завжди панікуєш.
6. Поки ми всі дивимось телевізор, Ганна готує вечерю. Люсі, давай допоможемо їй.
7. Правда, що Чарльз і Мелані одружуються наступного тижня?
8. До речі, ти йдеш на вечірку до Метью у цю суботу?
9. Ні, не йду. Я не хочу зіткнутися (bump into) там зі своїм попереднім бой-френдом.
 10. Усе міняється у наші дні. Все більше людей кидають села і перебираються до міст.
Міста ростуть. Населення збільшується.
11. Так, часи змінюються, і ми змінюємося з часом.
12. Тільки не наш Роберт. Мій молодший брат як і раніше позичає у мене гроші і не
хоче повертати. Так, Роббі, ти завжди забуваєш свої борги.

THE PRESENT SIMPLE versus THE PRESENT CONTINUOUS

Ex.28. Open the brackets, putting the verbs into the correct form, the Present
Continuous or the Present Simple. Compare the sentences, try to elicit the difference.
1. Why _____ you _________ (not/listen) to me? – I _________ (listen) to you very
attentively. I always (listen) to you attentively.
2. Why _____ you _________ (yawn)? – I _________ (yawn) because I’m very tired
and it is already late. I always _________ (yawn) when I’m tired.
3. Do I like our new flat? Sure. It is large and light and it _________ (have) a balcony
facing the sea. We ________(have) a party this Sunday. Can you come?
4. Look! Vivien _________ (wear) the same shoes like me.
5. Why ____ you never _______ (wear) your red jacket? It is so stylish.
6. Look! It _________ (snow). - Oh, how beautiful! This is the first time I’ve seen
snow. It _________ (not snow) in my country.
7. Mark Brown is a computer consultant. He _________ (work) for a firm which is
based in Geneva but he _________ (work) in Bradford these days. He _________ (set
up) a new quality control system at the moment.
8. You know, I _________ (leave) for Warsaw tonight. Му train ________ (leave) at 8
p.m.
9. The river Danube _________ (cut) Budapest in two.
10. Have a smoke, Vic. – No, thank you. I _________ (cut down) on cigarettes. At least,
I’m trying to.

Ex.29. Match the questions and answers.

1. What language do they speak? a. Me, on special occasions.
2. What language are they b. Me. Only a little, please.
speaking? c. Yes, she does.
3. What does he do? d. They mostly speak English. Though his
4. What is he doing? wife Margo is from France, she fluently
5. Does your daughter play the speaks English.
piano? e. Actually, that’s her CD.
6. Is your daughter playing the f. He’s a student.
piano? g. I’m at the exhibition “Tourism” this week.
7. Who drinks champagne? h. I’m not sure. It sounds like Spanish.
8. Who is drinking champagne? i. I guess he wants to get the car started.
9. Where do you work? j. In a big travel agency.
10. Where are you working this
week?

Ex.30. Fill in the gaps with the verbs in brackets. Be careful in choosing the tense form: the
words have different meaning when used in the Present Simple or Present Continuous.
1. - Shall we go shopping?
- Oh no, Nora, I can’t. I am seeing my boyfriend tonight. (to see)
2. Can I call you later? We ___________________ lunch right now. (to have)
3. - I see you ______________ the fish, Clare. (to smell)
- It _____________ a bit strange. I’m afraid it might have gone off. (to smell)
 4. I _______________ we should postpone the decision until Friday. (to think)
5. - How much _______this chicken _______? (to weigh)
- I don’t know. The shop assistant ____________it now. (to weigh)
6. - I like this suit. It ____________ you like a glove. (to fit)
- Shall we take it?
7. Thank you for the flowers. The roses are lovely and they __________ so nice. (to
smell)
8. We ________________ at the photos of you in the Vatican. (to look)
9. - The meat ____________ awful. (to taste)
- I think I overcooked it.
10. I ___________ what you mean. (to see) It’s a good idea!
11. You _____________ fabulous in this dress. (to look)
12. We _____________ a new kitchen next week. (to fit)
13. I ________________ about Richard’s comment. (to think) Maybe he is right.
14. - Why ________ you ________ the baby’s drink? (to taste)
- I ______________ it to see if it is OK.
15. Why don’t we go for our summer holiday to my relatives in Palermo? They
_________ a very good villa by the sea. (to have)

Ex.31. Translate into English.

1. Кожний школяр знає, що вода кипить при 100ºС.
2. Чайник кипить. Виключи, будь ласка.
3. Бабуся, що ти печеш (bake)? Пахне дуже смачно.
4. Наша бабуся завжди щось пече у неділю.
5. Що ти тут робиш, Бетті? – Куштую бабусин пиріг. Смачно!
6. Знаєш, Джон і Мері шукають нову квартиру. Вони бажають орендувати більшу
квартиру.
7. У наш час все дуже змінюється. Усе більше і більше людей подорожують і бувають
у різних містах і країнах.
8. Так, і ціни зростають. А ти, між іншим витрачаєш багато грошей на свої креми і
різні дрібнички. (knick-knacks)
9. Нік, ти вічно буркотиш з приводу грошей. (grumble about)
10. До речі, ти завтра вранці летиш до Ліона, чи не так? О котрій ти виїжджаєш з
дому? – Мій рейс о 9-ій. Я маю бути там до 7-ої години.