Home work № 1 (Economic systems)
1. What type of economy does the country you live in have?
2. Why are most modern economies mixed?
3. Most economic systems have important goals. Some examples are freedom, equity, security, employment,
stability, and economic growth:
(a). Choose two of the goals listed above.
(b). Which of the four economic systems (traditional, command, market, or mixed) is most able to achieve the two
goals you chose? Give details to support your statements (no less than 10 sentences).
4. What does the graph shows below?
5. Describe the diagram

Choose one of these tasks (diagram or graph)
Home work № 2 (Economic resources)
1) Economy of any region or country depends on its economic resources. Analyze what are the main resources
of your region/country and describe the way they affect on the development of the economy.
2) Look at the graph below which illustrates fluctuations in domestic investment in the USA as a percentage of
potential Goss National Product, from 1929 – 1988. The level of investment is clearly linked to the business
cycle. Insert the words in the box in the text below.
Boom
Contracted
Depression
Downturns
Expanded
Peak
Recession
Recovery
Upturns
A period of stock market speculation ended dramatically in October 1929 with the infamous Wall Street Crash.
There followed a dramatic (1) ………… . The economy (2) ………….. again after World War II. There was a
series of (3) ……….. and (4) ………. in the 1950s. There was a long (5) ………….. in the 1960s. Investment
reached a (6) ……….. in 1972, just before the first oil crisis. There was a (7) …….. in 1975 and the economy (8)
…….. again in 1982, but time there was a rapid (9) ………… .
Downturn – экономический спад; спад деловой активности
Contracted - суженный; укороченный; сморщенный, съежившийся, сжатый; короткий, лаконичный
Recovery – восстановление, оживление, взыскание, получение обратно, инкассирование, возмещение
Expanded – перспективный, протяженный, распространенный, растянутый, увеличенный
Upturn - подъем, рост, улучшение, повышение, рост ( цен и т.п. )
Home work № 3 (Demand, supply and elasticity)
1. In the table below you can see some goods (column 1). In column 2 there are events that took place in the
market of these goods. In column 3 please point the reasons of the change of demand. In column 4 please
show the shift of demand curve which takes place as a result of this event.
1
Good
2
Event
Automobiles
Increase of petrol
price
Video tape
recorders
Increase of price on
video tapes
Leather coats
Leather becomes
very fashionable
Audio cassettes
Decrease of price
on CDs
Presents from the
Coca-Cola
company
Summer holidays
Coca-Cola
School text books
Pet food
VHS tape recorders
Washing machines
Tooth paste
TV sets
Increase of the pet
owners
Customers expect
digital recorders to
appear in the
market.
Consumers expect
the decrease of
prices on washing
machines
Intensive TV
advertising of tooth
paste
Increase in income
of the population
3
Reason
4
Shift of demand
curve
2. In the table below you can see some goods (column 1). In column 2 there are events that took place in the
market of these goods. In column 3 please point the reasons of the change of supply. In column 4 please show
the shift of supply curve which takes place as a result of this event.
1
Good
Electrical energy
Corn
Chocolate
Foods for children
Computer tables
Tours to Europe
Batteries
Shoes
Furniture
Video cassettes
2
Event
3
Reason
4
Shift of demand
curve
Implementation of
new technology
that allows to save
more energy
Very dry weather
during the summer
A new tax on the
producers of the
chocolate
State subsidies for
the producers of the
food for children
Grow of demand
on computers
Producers expect
the bigger income
of the population
Decrease of price
on players
The new shoe
factory was opened
in this region
Increase of price on
timber
Increase of demand
on video tape
recorders.
I. You have the following demand schedule.
Price of CD($)
12
10
8
6
Demand on CD
50
70
80
95
Find coefficients of demand elasticity on the following
intervals:
1. Price rises from 6 to 8 $
2. Price rises from 8 to 10$
3. Price rises from 10 to 12$
II. If the price of a videocassette rises from 5$ to 6$ the quantity of demand decreases from 15 to 10 videocassettes.
1. Find how will the total revenue change.
2. Is the demand elastic or inelastic?
III. If the price of chocolate falls from 10$ to 9$ the quantity of demand increases from 100 to 110 videocassettes.
3. Find how will the total revenue change.
4. Is the demand elastic or inelastic?
IV. The price of good B rises from 7$ to 10$. The quantity of demand on good A decreases from 76 to 56.
1. Find coefficient of cross elasticity
2. Are good A and good B compliments or substitutes?
V. You have the following information about the income of a family
Years
Monthly income
The first year
The second year
1000
1500
Quantity of potato
consumed per month
15
10
Quantity of meat
consumed per month
6
9
Find income elasticity of demand.
VI. You have the following supply schedule.
Price of CD($)
12
10
8
6
Supply on CD
100
90
80
50
Find coefficients of demand elasticity on the following
intervals:
4. Price falls from 12 to 10 $
5. Price falls from 10 to 8 $
6. Price falls from 8 to 6 $
VII. If the price of a of good A changes from 4$ to 3$ the quantity of supply of good B decreases from 100 to 75
videocassettes.
3. Find coefficient of cross elasticity
4. Are good A and good B compliments or substitutes?