UNIT ONE

WHY STUDY ECONOMICS

ESSENTIAL VOCABULARY

1. Achieve v – to complete something successfully or get a good result, especially by

working hard – досягати, добиватися. To achieve/gain/reach/one’s aim/goal/
purpose – досягти своєї мети.
2. Affect v – to bring about a change in something – впливати. Syn. to influence, to
have an effect on.
3. Apply v – to bring or put into operation or practical use – використовувати,
застосовувати, вживати.
4. Business n – the activity of making money by producing or buying and selling
goods or providing services – бізнес, підприємництво, справа. Business
management – управління комерційним підприємством; business skills –
підприємницькі/ділові навички/уміння; business world – діловий світ. To succeed
in business – досягти успіху в підприємницькій діяльності. Syn.
entrepreneurship.
5. Choice n – the act of choosing or selecting; the right or possibility of choosing –
вибір; альтернатива, можливість вибору. To have no choice – не мати вибору,
to make a choice – робити вибір. Syn. an alternative, a pick, a trade-off.
6. Commodity n – a product that is bought and sold – предмет ужитку, товар.
Syn. goods, a product.
7.Consider v – think carefully about (something), typically before making a decision
– думати, вважати; розглядати, обмірковувати. Syn. to discuss, to examine,
to inspect, to observe, to be considered, to be under consideration, to look at/on.
8. Decision (about/on) n – a settlement of a question, a making up of one’s mind –
рішення. Business decision – рішення комерційних питань, ділові рішення;

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career decision – рішення щодо кар’єри. To arrive at/come to/make/take a
decision/to decide – приймати рішення.
9. Do with v – to have relations to; to be connected with – мати справу з чимось,
займатися чимось. Syn. to be concerned with, to deal with.
10.Economics n – a science dealing with production, distribution, consumption, and
exchange of commodities – економіка. Business economics – економіка
підприємств.
11.Economy n – an organized system for production, distribution, exchange and
consumption of the wealth of society – господарство, економічна система,
економіка. National economy – народне господарство.
12. Effect n – the result or consequence (наслідок) of an action – вплив, наслідок,
результат. Cause and effect – причина та наслідок. Syn. a consequence, a result.
13.Efficiency (іфішенсі)n – the quality of doing something well – ефективність,
продуктив-ність. Economic efficiency – економічна
ефективність/рентабельність, production/productive efficiency –
ефективність виробництва. Syn. productivity.
14.Enable v – to make it possible for or to allow a person to do something – давати
можливість, право. Syn. to empower.
15.Enter v – to start to take part in an activity, or become involved in a situation –
розпочинати, братися за щось; ставати частиною чогось; вступати,
входити. To enter the economy – ставати частиною економіки; to enter the
market – виходити/входити на ринок, з’являтися на ринку. Syn. to go to.
16. Enterprise n – a business unit; a company or firm – підприємство; завод;
фабрика. Syn. a company, an organization, a business.
17.Improve v – to make or become better in quality – удосконалювати(ся),
поліпшувати(ся), покращувати(ся). Syn. to make better.

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18.Issue n – an important subject of debate, a question that arises for discussion –
проблема, предмет суперечки/спірне питання. Economic issue – важлива
економічна проблема. Syn. a matter, a problem, a question, a point.
19.Living n – means of keeping alive or earning what is needed for life – засоби
існування; спосіб життя. Living standards/standard of living – рівень
життя/життєвий рівень. To earn/draw/gain/get/make a living – заробляти на
прожиття. Syn. livelihood.
20.Market n – the activity of buying and selling goods and services – ринок. The
stock market – фондова біржа/ринок цінних паперів; market for a commodity –
ринок товару.
21.Profit n – the excess (надлишок) of revenues(доход) over expenses in a business
enterprise over a given period of time, usually a year – прибуток, дохід, зиск. To
earn/draw/gain/ get/make a profit – отримувати/отримати прибуток. Syn. an
income.
22.Way n – a method that is used to do or achieve something. A way of life – спосіб
життя, one way or another – так чи інакше. To go out of one’s way – намага-
тися з усіх сил, to put it another way – іншими словами. Syn. a method, a means.
23.Welfare n – health, happiness, prosperity, and well-being in general –
благополуччя, добробут, достаток. Syn. wealth, well-being.

TEXT
What is economics and why is it so important for everyone?
Economics is not a bachelor’s degree or master’s degree in business or financial
management, although economics teaches us important business skills. Economics
isn’t a way of making lots of money in the stock market, although economics helps us
understand how stock markets and other markets work. Economics, first of all, is a
social science that helps to explain the secrets of how people make their living,
enterprises earn their profits and societies achieve their goals.

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Most of our conscious life is directly concerned with the economy and economics,
one way or another. If we want to get a job we have to enter the economy or in other
words, to enter the market for labour. If we want to buy food or clothing we go to the
economy or, to put it another way, enter the market for a particular commodity. We
all make economic decisions every day of our lives and economics helps us improve
the decision-making process*.
When reading newspapers, listening to the news, surfing the Internet, or just speaking
to our friends, we come face to face with economic issues that have an effect on us,
our friends and family as well as* our society.
These important economic problems do with a large number of questions including:
 Are we using energy efficiently?
 Why do financial crises occur?
 What are the consequences (наслідки) of a nation’s large budget deficit?
 What are the economic effects of emigration from Ukraine?
Economics helps answer these and a great many of other questions we can’t help
dealing with* in a contemporary society – allocation of resources, inflation,
unemployment (безробіття), discrimination, economic growth, pollution and poverty
(бідність). Thus, studying economics is worth (заслуговує) our effort(зусиль) and
time as it enables us to improve our own as well as a nation’s welfare.
When it comes to* reasons of studying economics they are as different as we are and
the ways it helps us individually change from person to person.
For some of us, economics, first of all, develops an analytical, clear, and accurate
(точність)way of economic thinking about all kinds of things and can be applied to a
variety of different fields. It is a powerful tool which, once learned*, enables us to
separate facts from emotions, examine and track cause and effect relationships*
carefully. Economic reasoning(міркування) also helps to evaluate (оцінювати) the
advantages and disadvantages of choices we make in order to gain our aims and deal
(справи) with a wide range (діапазон) of economic matters (питань) intelligently
(розумно).

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For others, economics studies how to gain a living.(як заробляти на життя)
Studying economics we can realize where our money comes from and goes in and
how to manage(управляти) money we get. The more we know about economics, the
better career and business decisions we are able to take, the higher living standard we
enjoy.
Businessmen require knowledge of the “ins and outs”* of business economics to
achieve the highest production efficiency, draw the greatest possible profits with the
least possible production costs*, meet competition in the market and as a result
succeed in the business world.
Besides, a basic understanding of economics is necessary if we want to understand
national and international affairs (справи) and become responsible
(відповідальними) and knowledgeable citizens in order to affect the decisions of our
political leaders by voting (голосування), directly or indirectly, on many points
involving economic issues. Knowledge of economics also helps us to be efficient
members of the workforce(трудові ресурси), better informed voters, consumers,
(споживачі) savers, and investors in a democracy*. Thus, economic knowledge
enables us to manage our personal lives, understand society, and make better the
world around us.
But why does everyone – no matter what we are – economists, teachers, doctors,
workers, or students – consider economics so important?
 Economics is important for individuals, as economic decisions affect the quality
of their life.
 Economics is important for firms, which need to be profitable (прибутковими) in
their activities.
 Economics is important for governments, as they want to come to good decisions
about economic policies.
 Economics is important for society as a whole, since* it needs to use its
productive resources in the most efficient way.

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All in all, everybody needs to know economics in order to understand and live in our
world today. Of course, economic knowledge cannot make us geniuses. But without
economics the dice of life are simply loaded against us*.

COMMENTS:
as well as – а також; так само як; як ..., так і ...; і ... і ...;
decision-making process – процес прийняття рішень;
we can’t help dealing with – з якими ми не можемо не мати справи;
when it comes to – коли мова йде/заходить про;
once learned – одного разу дізнавшись;
track cause and effect relationships – відслідковувати причинно-наслідкові
зв'язки;
“ins and outs” – деталі, подробиці; обставини справи;
since – оскільки;
production costs – виробничі витрати;
a democracy – демократична держава; держава з демократичною формою
правління;
the dice of life are simply loaded against us – удача, яка дається нам долею,
легко може обернутися проти нас.

Exercise 1. Give the Ukrainian equivalents for the following.

1. conscious life _____________________________________________________

2. to enter the market for labour ________________________________________
3. to come face to face ________________________________________________
4. a large budget deficit _______________________________________________
5. economic growth __________________________________________________
6. to apply to a variety of different fields _________________________________
7. economic reasoning ________________________________________________

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8. to become responsible and knowledgeable citizens _______________________
__________________________________________________________________
9. directly or indirectly _______________________________________________
10.to affect the quality of their life _______________________________________
11.to use its productive resources ________________________________________
Exercise 2. Find in the text the English equivalents for the following.
1. влаштовуватися на роботу ___________________________________________

2. розміщення ресурсів ________________________________________________

3. вивчення економіки варто наших зусиль _______________________________

4. аналітичний, логічний та точний спосіб економічного мислення

___________________________________________________________________
5. вагомий засіб ______________________________________________________

6. оцінювати переваги та недоліки виборів _______________________________

7. витримувати конкуренцію ___________________________________________

8. розуміти питання державної політики та міжнародних відносин

___________________________________________________________________
9. щодо багатьох проблем _____________________________________________

10. досягати найбільшої ефективності виробництва ________________________

___________________________________________________________________
11. керувати нашим особистим життям ___________________________________

12. рішення щодо напрямків економічної політики _________________________

Exercise 3. Match these nouns/noun phrases, prepositions (if necessary) and

nouns/noun phrases as they occur together in the text. Translate the expressions
they make into Ukrainian.

budget to standard
face the workforce
knowledge for deficit
living labour

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 market of face
members the “ins and outs”

Exercise 4. Match the verbs/verbal phrases, prepositions (if necessary) and nouns/
noun phrases or pronouns as they occur together in the text. Translate the
expressions they make into Ukrainian and read sentences including them.

to come the economy and economics

to enter emotions
to get good decisions
to go from a job
to have an effect to money
to track in our aims
to manage on the economy
to gain cause and effect relationships
to separate facts the economy
to succeed us

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Exercise 5. Copy out from the texts the sentences containing the following words
and word-combinations and translate these sentences into Ukrainian.
1. a social science _____________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________

2. surfing the Internet __________________________________________________

____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________

3. a nation’s welfare ___________________________________________________

____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________

4. a powerful tool _____________________________________________________

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____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________

5. deal with __________________________________________________________

____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________

6. living standard _____________________________________________________

____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________

7. involving economic issues ____________________________________________

____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________

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____________________________________________________________________

8. productive resources ________________________________________________

____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________

Exercise 6. Find words in the text synonymous in meaning to the following. Read
the sentences containing them.

Task Text Task Text

a buyer personally
a company relations
a country results
a great deal of significant
a topic individual
a type to control
also to deal with
as modern
both … and … to influence
correct wisely
fundamental to need
individuals well-informed
logical to give an opportunity

Exercise 7. Find in the box the English equivalents to the words listed below. More
than one is possible.

1. вибір (3) __________________________________________________________

2. впливати (3) _______________________________________________________

3. досягти своєї мети (3) ______________________________________________

4. економічні міркування (2) ___________________________________________

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5. ефективність (2) ___________________________________________________

6. заробляти на прожиття (3) ___________________________________________

7. іншими словами (2) ________________________________________________

8. мати справу з чимось (3) ____________________________________________

9. отримувати прибуток (3) ____________________________________________

10. приймати рішення (4) _______________________________________________

11. проблема (4) ______________________________________________________

12. результат (3) ______________________________________________________

13. ряд, коло, низка () __________________________________________________

14. спосіб (3) _________________________________________________________

15. виходити/з’являтися (2) _____________________________________________

an issue a method to affect a number of to go to

to make a living a result a means a matter to decide
to draw a profit an effect a range of a trade-off to earn a living
a consequence to enter to influence productivity to earn a profit
an alternative to deal with a problem in other words to do with
to take a decision efficiency a choice a way a point
to come to a decision to have an effect on to achieve one’s aim
to gain one’s purpose to reach one’s goal to put it another way
economic reasoning to be concerned with to make a decision
to make an income economic thinking of to gain a living

Exercise 8. Replace the words or word combinations in bold type with their
synonyms.
1. Everyone, from the child to the elderly, is affected, one way or another, by the

economy as well as by economics.

2. Most people study economics to better realize the consequences of the important

economic problems with which they come face to face every day.

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3. Economics enables people to take their decisions about how to make their living

and achieve their goals in order to improve their own welfare.

4. The study of economics helps us to trace cause and effect relationships of issues

involving inflation, unemployment, poverty as well as economic growth and budget

deficit.
5. By studying economics, we will improve an analytical, clear and critical way of

economic thinking to consider alternatives.

6. Economics is a social science that deals with (do with, be concerned with) society's

decisions concerning allocation of resources in the most efficient way.

7. Economics teaches businessmen how to use productive resources to achieve the

greatest productivity.
8. In a democracy government applies to economics to determine its economic

policies which, in turn, have an effect on the achievements of a nation’s economic

goals.
9. Knowledge of economics enables businessmen to gain the greatest possible profits

with the least possible production costs.

Exercise 9. Translate the words in brackets into Ukrainian.

(Економіка) provides (логічний спосіб) of studying (ряду) of problems. The field of
economics covers topics ranging from (прийняття певних ділових рішень) to some
of society’s (найбільш важливих проблем). (Не можливо) to fully (зрозуміти)
politics, social reforms, or international relations without (розуміння) of their
economic value. An undergraduate education in economics (дає можливість
людям) to better realize and help solve (проблеми) in today's (бізнесі та
суспільстві).
Economics training helps develop adequate (способи логічного мислення) and
problem solving which can be used in our lives as effective members of the

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workforce, responsible and (добре обізнаний громадян), informed consumers,
savers, and investors, and perceptive participants in the (глобальній економіці).

Exercise 10. Translate the text into Ukrainian.

Why is it important to study economics ___________________________________
or learn about our economy? ___________________________________
There are many reasons, but one of the ___________________________________
most important is that the study of ___________________________________
economics is concerned with how ___________________________________
people draw their living and get the ___________________________________
goods and services they need and want. ___________________________________
It also deals with money – how it is ___________________________________
made, lost, used and misused and how ___________________________________
to manage it in the most efficient way. ___________________________________
When our economy succeeds, we as a ___________________________________
nation and as people improve our own ___________________________________
welfare. ___________________________________
When our economy is in crisis or ___________________________________
doesn't gain its goals we as people ___________________________________
don't always get the goods and services ___________________________________
we need. ___________________________________
Thus, it is important for all people to ___________________________________
be knowledgeable citizens when it ___________________________________
comes to a nation’s economy as well as ___________________________________
the world economy. ___________________________________

Exercise 11. Translate into English using the active vocabulary.

1. Існує ряд причин вивчати _____________________________________

економіку. _____________________________________
2. Економіка – це суспільна _____________________________________

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наука, яка займається виборами, _____________________________________
що робляться людьми та _____________________________________
суспільством, коли мова йде про _____________________________________
розміщення ресурсів. _____________________________________
3. Економіка – це наука про те, як _____________________________________

робляться вибори і приймаються _____________________________________

рішення, чому робляться вибори і _____________________________________
приймаються рішення та який _____________________________________
наслідок ці вибори і рішення _____________________________________
мають. _____________________________________
4. Економіка – цікава, тому що _____________________________________
вона навчає нас як аналітичному _____________________________________
та логічному способу розуміння _____________________________________
світу навколо нас, так і більш _____________________________________
глибокому усвідомленню різних _____________________________________
важливих економічних проблем. _____________________________________
5. Основне розуміння економіки _____________________________________
дає можливість підприємцям _____________________________________
приймати кращі ділові рішення, _____________________________________
витримати конкуренцію на ринку _____________________________________
та досягти успіху в _____________________________________
підприємницькій діяльності. _____________________________________
6. Підприємцям слід знати _____________________________________
подробиці економіки підпри- _____________________________________
ємств, якщо вони сподіваються _____________________________________
досягти найвищої ефективності _____________________________________
виробництва та отримати _____________________________________
найбільший прибуток від своїх _____________________________________
підприємств. _____________________________________
7. Способи, якими економіка _____________________________________

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може впливати на добробут _____________________________________
людей, такі ж різні, як і особисті _____________________________________
життя людей. _____________________________________
8. Знання економіки не може _____________________________________
зробити людей геніями, але воно _____________________________________
допомагає їм стати відповідаль- _____________________________________
ними та добре обізнаними _____________________________________
громадянами та краще поінфор- _____________________________________
мованими виборцями, спожива- _____________________________________
чами, власниками заощаджень та _____________________________________
інвесторами в державі з демокра- _____________________________________
тичною формою правління. _____________________________________
9. У сучасному суспільстві люди _____________________________________

часто, безпосередньо або опосе- _____________________________________

редковано, беруть участь в _____________________________________
обговоренні ряду важливих _____________________________________
економічних проблем, які вклю- _____________________________________
чають питання державної полі- _____________________________________
тики та міжнародних відносин. _____________________________________
10. Підприємцям важливо знати _____________________________________

способи одержання найбільш _____________________________________

можливих прибутків з найменш _____________________________________
можливими виробничими _____________________________________
витратами. _____________________________________
11. Ми стикаємося лицем до лиця _____________________________________

з такими проблемами, як інфля- _____________________________________

ція, безробіття, енергетична криза _____________________________________
та великий бюджетний дефіцит, _____________________________________
що безпосередньо відносяться до _____________________________________
господарства країни _____________________________________

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Exercise 12. Answer the following questions.
1. What does economics teach people?
2. What does economics explain?
3. What is the first goal of economics?
4. Why are people’s lives concerned with the economy as well as with economics?
5. What is the second task of economics?
6. What economic issues do we come face to face?
7. Why do these economic issues affect us?
8. Why is studying economics worth people’s effort and time?
9. Why do people have different reasons to study economics?
10. Why is economics considered a training of clear and accurate economic thinking?
11. Why does economic reasoning become a part of a contemporary society’s
everyday life?
12. What does economics mean for other people?
13. Why does economics teach people how to gain a living?
14. Why should people in the world of business require knowledge of economics?
15. What is a basic understanding of economics widely used for?
16. In what way do people use their basic understanding of economics?
17. Why does economics affect the quality of individuals?
18. In what way does economics help businessmen have profitable firms?
19. Why is economics important for governments?
20. Economics helps society to use its productive resources efficiently, doesn’t it?
21. Why is economics considered so important?
22. What are the ways economic knowledge help us in succeeding in our material
welfare?
23. How can learning of economics help the young people to succeed in preparing for
life?

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Exercise 13. Text for additional reading and discussion.

Economics provides a logical, clear, and ordered way of examining problems that
help individuals in some way despite the field of their activity. This way of economic
thinking helps economics students understand why a large number of issues remain
controversial, even among economists.
Economics withdraws a great deal of the necessary information from history,
psychology, mathematics, philosophy, and a variety of other disciplines to prepare
graduate students for questions ranging from household management to business
decision making through such economic issues as how to reduce unemployment,
control inflation, analyze tax policies, and to come face to face with problems such as
productivity and environmental pollution. Economics students learn to solve such
questions using methods of analytical reasoning and empirical research.
Equipped with an understanding of basic principles, the students learning economics
are prepared to analyze problems and policies in different fields of economics such as
money and finance, managerial economics, labor economics, consumer economics,
public policy, international economics and so forth. Besides, new problems and
questions are leading to the emergence of new fields of study in environmental
economics, human resources economics and urban economics. Knowledge of
economics will enable future economists intelligently explain and predict the effect of
government policies, trends in home market as well as in international trade.
The study of economics provides an understanding of the business world in which all
enterprises operate. Economics equips graduate students with the tools, skills and
perception necessary to make well-considered business decisions. Decision making is
an integral part of business. By applying economic principles knowledgeable
businessmen will go out of their ways to gain maximum productive efficiency.
Since economics is such a big part of life, it is important that people fully understand
it. It will help them make more informed decisions both as consumers and as voters.
Perhaps the most important advantage of studying economics is learning how to
“think like an economist”. Economics is used in many fields of employment such as

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government, finance, business, administration, law and many others. The intensive
study of economics provides a basis of thinking that will serve graduate students well
in a variety of vocations. The ability to present and discuss ideas, concepts and
arguments in a clear and accurate way, to evaluate decisions and the reliability of
information, are the important gained skills that are valuable in a wide variety of
careers.

Questions for economic reasoning and discussion

Choose the right variant. Only one is possible.

1. Why should you study economics?

a. To learn a way of thinking.
a. To understand society.
b. To understand global affairs.
c. To be an informed voter.
d. All of the above.

2. One of the major benefits of studying economics is the

a. guarantee of a good job upon graduation.

b. increased understanding of how the world works.

c. fact that there is no opportunity cost from taking an economics course.

d. decreased satisfaction with the world.

3. As a consumer, you potentially will benefit from studying economics through

a.learning how to purchase fewer goods and services.

b. making wiser and more perceptive purchasing decisions.

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 c.purchasing more expensive goods and services.

d. developing into a better producer of goods and services.

4. As a worker, you will benefit from studying economics through

a.increased potential earnings and better career decisions.

a.making wiser and more perceptive political decisions.

b. learning how to consume fewer goods and services.

c.becoming better at consuming goods and services.

2. “If all people could have anything they wanted simply by rubbing a magic lantern,
there would be no need to study economics.” Explain this statement.

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1. Make the list of reasons why you study economics. In what way does the
knowledge of economics will help you in your life when you graduate from
university?
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4. Speak about the reasons of studying economics as if you have a talk with your
group mates, your younger brother or sisters, you relatives from the country…

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