VOCABULARY EXERCISES

A. Complete the following sentences with the appropriate word from the box below.

1. A good manager is … in the use of his funds.

2. A small car is more … than a large one, because it uses less petrol.

3. An … person serves money and expense wherever possible.

4. An … is a person who studies, teaches, or writes about economics.

5. By exercising strict … he saved enough money to retire early.

6. By using … in buying food and clothes, we were soon able to save money for the new car we needed.

7. … is a social science concerning behaviour in the fields of production, consumption, distribution, and exchange.

8. If you can … your time, you will get more done in less time.

9. In the long run, it is an … to buy good quality goods, even though they cost more.

10. In times of difficulties we all have to … .

11. It is much more … to buy in bulk.

12. Nations experience different rates of … growth.

13. The country is in a bad … state.

14. The country is in the period of … and industrial crisis.

15. The country's … has grown rapidly in the second half of the 20th century.

16. The … is a weekly journal published in London since 1843.

17. The loss of business was so great that they had to … on staff.

18. The science or principles of the way in which industry and trade produce and use wealth is called …

19. There are many competing schools of thought in … .

20. Unofficial strikes were damaging the British … .

B. Complete the following chart:

C. Find words in the text which mean the same as the following:

1. to manufacture 4. guaranty 7. to buy

2. allocation 5. rationally 8. lack

3. use 6. limitation 9. goods

10. certain

COMPREHENSION

A. Select the correct answer:

1. Economics is the study of the natural laws governing the

a. production of wealth;

b. distribution of wealth;

c. consumption of wealth;

d. all of the above.

2. Economics is considered to be a

a. natural science;

b. social science;

c. life science;

d. physical science.

3. The major divisions of economics are

a. global economics and home economics;

b. microeconomics and macroeconomics;

c. industrial economics and agrarian economics;

d. rural economics and urban economics.

4. Which of the following are the major goals of the economy?

a. full employment;

b. price stability;

c. an equitable distribution of income;

d. all of the above.

5. In economics, what does scarcity mean?

a. that when there is a shortage of a particular good, the price will fall;

b. that very few buggy whips are being manufactured nowadays;

c. that society's desires exceed the want-satisfying capability of the resources available to satisfy those desires;

d. none of the above.

6. Which of the following best describes the term “resource allocation”?

a. witch goods and services society will produce with available land, labour, and capital;

b. how society spends the income of individuals;

c. how society purchases resources;

d. how one spends one's income.

7. Which of the following best describes the subject matter included in principles of economics?

a. how the economy allocates its scarce resources;

b. how households make decisions;

c. how governments make choices about resources;

d. how society purchases resources.

B. Do you think the following statements are true or false? Discuss your answers in pairs.

1.Economics is the study of how goods and services get produced and how they are distributed.

2.It is easy to define economics.

3.Economics is a natural science concerned with the production, distribution, exchange, and consumption of goods and services.

4.Microeconomics and macroeconomics study the same phenomena.

5.Goods are scarce because society's desire for them exceeds society's ability to produce them.

6.No one has ever succeeded in neatly defining the scope of economics.

7.Microeconomics focuses on the economy as a whole.

8.One of the central concerns of economics is the efficient allocation of available resources.

9.Macroeconomics focuses on a specific individual, firm, industry, or government agency.

10. The distribution of income largely determines the kinds of goods and services the economy will produce.

11. If the economy is fully and efficiently employing its resources, then the only way to acquire more of one good is to accept less of something else.

12. The task of economic theory is to explain and predict the economic behaviour of economic resources.

C. Answer the following questions:

1. Is economics a science?

2. Who is considered to be the father of economics?

3. What is the origin of the word “economics”?

4. Is it difficult to define economics? What definitions of economics have you learned from the text?

5. What is the subject of economics?

6. What problems are economists concerned with?

7. Differentiate between the major divisions of economics.

8. Explain why scarcity is one of the main topics in economics.

9. What is the relationship between government and economics?

10. What is the reason for the constant process of making choice by individuals, companies, governments?

11. What is the role of economists in the development of modern societies?

Date: 2015-04-20; view: 2325