Microeconomics 1. Read and translate the following word combinations: decision takers; individuals, households and firms respond to; how resources are used and distributed; to have different values; to coordinate and to cooperate; to conduct and to benefit from efficient production and exchange; to be known as tendencies; to affect decision-making; consumer theory; the theory of pricing; to be grouped into microeconomic subgroups; to create the supply and demand; pricing mechanisms for coordination; to be critical to daily life; microeconomic principles; to consider incentives, rebates or low interest rates; to stick to the budget; to make similar microeconomic considerations; to attain the most valuable or beneficial patterns of; among market participants; to set a minimum wage; subsidizing the production of certain commodities; to analyze pricing or production choices; to assess purchasing and spending decisions. 2. Read and translate the text: Microeconomics considers the behaviour of decision takers within the economy. It is a social science that studies how individuals, households and firms respond to changes in incentives, prices, resources or methods of production. The word ‘firm’ is used generically to refer to all types of business. Microeconomics focuses on what motivates the decisions that people and companies make. It studies how resources are used and distributed. It shows how and why different goods have different values. Microeconomics also shows how individuals can coordinate and cooperate with others. It addresses how individuals and businesses conduct and benefit from efficient production and exchange. These scenarios are also known as tendencies. This branch of economics focuses on various factors that affect decision-making, such as supply and demand, failures in the market, and prices. Some of the most common theories addressed in the study of microeconomics include consumer theory and the theory of pricing. Individuals are often grouped into microeconomic subgroups such as buyers, sellers, and business owners. These groups create the supply and demand for resources, using money and interest rates as pricing mechanisms for coordination. Microeconomics is critical to daily life even in ways that may not be evident to those engaging in it. Take the case of someone who wants to buy a car. Microeconomic principles play a central role in individual decision-making. They may consider incentives (rebates or low interest rates) when assessing whether to purchase a vehicle and may select a make and model based on maximizing as they stick to their budget. A car company will have made similar microeconomic considerations in the production and supply of cars into the market. Microeconomics can be applied in a positive or normative sense. Positive microeconomics describes economic behavior and explains what to expect if certain conditions change. Predictions of positive microeconomics can be applied normatively to prescribe what people, businesses, and governments should do to attain the most valuable or beneficial patterns of production, exchange, and consumption among market participants. Microeconomics has a wide variety of uses. Policymakers may use microeconomics to understand how public economic policies affect decision-making by consumers and businesses, such as the effect of setting a minimum wage or subsidizing the production of certain commodities. Businesses may use microeconomics to analyze pricing or production choices. Individuals may use it to assess purchasing and spending decisions. 3. Answer the questions: 1. What does microeconomics consider? 2. What factors affect decision-making in economics? 3. What does the study of microeconomics include? 4. What are microeconomic subgroups? 5. What do microeconomic subgroups create? 6. Why is microeconomics important? 7. What can predictions of positive microeconomics normatively prescribe? 8. How may policymakers, businesses and individuals use microeconomics? 4. Match the terms with their definitions: A. 1. Consumer 2. Services 3. Resources 4. Prices 5. Activity 6. Monopoly 7. Individuals 8. Goods 9. Competition 10. Analysis a) a person who purchases goods and services for personal use b) a single human being as distinct from a group, class, or family c) a stock or supply of money, materials, staff, and other assets that can be drawn on by a person or organization in order to function effectively d) assistance or advice given to customers during and after the sale of goods e) detailed examination of the elements or structure of something f) merchandise or possessions g) the activity or condition of opposing h) the amount of money expected, required, or given in payment for something i) the condition in which things are happening or being done j) the exclusive possession or control of the supply of or trade in a commodity or service B. 1. Allocation 2. Demand 3. Elasticity 4. Market 5. Oligopoly 6. Scarcity 7. Supply 8. Decisions 9. Equilibrium 10. Economy a) the state of being in short supply; shortage b) the degree to which a demand or supply is sensitive to changes in price or income c) the action or process of distributing something d) make (something needed or wanted) available to someone; provide e) careful management of available resources f) an insistent and peremptory request, made as if by right g) a state of limited competition, in which a market is shared by a small number of producers or sellers h) a state in which opposing forces or influences are balanced i) a regular gathering of people for the purchase and sale of provisions, livestock, and other commodities j) a conclusion or resolution reached after consideration 5. Put questions to the underlined words: 1. Microeconomics provides a more detailed understanding of individuals, firms and markets. 2. Producers have to decide how much to produce and for whom. 3. Microeconomics is focused on the decision-making of individuals and firms within economies. 4. Consumers demand goods and services. 5. Microeconomists test the models against real-world observations. 6. Demand is created by the needs of consumers. 7. Various microeconomic models are based on logic and observed human behavior. 8. Supply refers to the quantity of goods and services. 9. A monopoly arises when there is only one producer in the market. 10. Microeconomics analyzes market failures where productive results are not achieved. 6. Group the statements about microeconomics (6) and macroeconomics (6) 1. studies employment and inflation 2. shows how businesses benefit from efficient production 3. making important decisions that affect the economy 4. studies how companies make choices regarding the utilization of resources 5. is focused on the decision-making of individuals within economies 6. includes regional, national and global economies 7. focuses on individual decision-makers and specific markets 8. explains economic processes that concern aggregate fluctuation and growth 9. examines the subsequent effect on the price, demand, and supply 10. considers how the economy functions by addressing the concept of gross domestic product 11. analyzes how businesses coordinate and cooperate 12. considers the economy as a whole 7. Match the basic concepts of microeconomics with their explanation 1. Incentives and behaviors 2. Utility theory 3. Consumer theory 4. Production theory 5. Price theory 6. Theory of the firm a) Utility and production theory interact to produce this theory; the value demanded by consumers is the same as that supplied by producers in a perfectly competitive market; this results in economic equilibrium. b) This is the study of production or the process of converting inputs into outputs. Producers seek to choose a combination of inputs and methods of combining them that will minimize costs to maximize their profits. c) This branch of microeconomics examines the different ways in which enterprises within an industry may be structured, and seeks to derive lessons from these alternative structures. d) This addresses how people as individuals or groups react to the situations with which they're confronted. e) This theory explores how individuals make choices about spending their income based on their preferences and budget constraints. f) Consumers will choose to purchase and consume a combination of goods that will maximize their happiness or satisfaction to the constraint of how much income they have available to spend.
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01 октября 2025 12:19
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