Vocabulary focus

Ex. 1. Study the meaning of the following words, and then use them to fill in the gaps.

1. Economy

1.1 [countable] the system by which a country's money and goods are produced and used, or a country considered in this way: a capitalist economy | the burgeoning economies of the Pacific Rim

1.2 [uncountable] the careful use of money, time, goods etc so that nothing is wasted: For the sake of economy, I hadn't yet turned on the heating. | economy drive (=a period of time during which you try to spend less money than usual)

1.3 [countable] something that you do in order to spend less money: One economy would be to take sandwiches instead. | make economies: We're trying to make a few economies this month. | false economy (=something that seems cheaper but costs more in the end): Buying cheap tyres is a false economy - they wear out much more quickly.

1.4 economies of scale technical the financial advantages of producing something in very large quantities: The doubling of output can lead to economies of scale of up to 30%.

2. Economics – [uncountable] the study of the way in which money and goods are produced and used: She studies economics at the London Business School.

3. Economic

3.1 [only before noun] connected with trade, industry, and the management of money: strategies to promote economic growth | It makes no economic sense at all! | economic climate (=conditions affecting trade, industry, and business)

3.2 an economic process, activity etc produces enough profit for it to continue; profitable: It is no longer economic for us to run the service. | an economic price

4. Economical – using money, time, goods etc carefully and without wasting any: an economical method of heating | I have a small car because it is more economical to run.

5. Economically

5.1 in a way that is related to systems of money, trade, or business: In economically advanced countries, childbearing typically begins later in life.

[sentence adverb]: Economically and politically, they've been disenfranchised.

5.2 in a way that uses money, goods, time etc without wasting any: We'll just have to shop as economically as we can from now on.

6. Economize – to reduce the amount of money, time, goods etc that you use [+ on]: We can't economize on the central heating because the baby needs a warm house.

Ex. 2. Supply the sentences with the words from above:

1. She majored in …. at Harvard.

2. We are faced with a deepening … crisis.

3. He’s got a degree in Modern History and …. .

4. She was brought up to be … with the housekeeping money.

5. The country is not … stable.

6. Many countries tried …. on fuel in the 1970s.

7. Employing too many part-time staff can be a false … .

8. …. of scale arise when costs do not rise in direct proportion to output.

Ex. 3. Express in one word.

1. Movable property; merchandise.

2. Idea underlying a class of things; general notion.

3. To take part in a race, contest, examination.

4. To put (parts of a set of thins) in different places; give or send out.

5. To find out, decide, the amount or value of something.

6. Smallness of supply compared with demand.

7. System whereby people live together in organized communities.

8. Condition of having good health, comfortable living and working conditions, etc.

9. Great amount of property, money, etc.; richness.

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Words for reference: concept, goods, scarcity, society, wealth, welfare, to compete, to distribute, to evaluate.

Ex. 4. Make adjectives of the following nouns (a) and make nouns of the following verbs (b).

1. scarcity, concept, goods, resource, wealth

2. to assemble, to concern, to evaluate, to increase, to realize

Ex. 5. Using a dictionary add as many words as possible into the table. Find sentences with these words in the text and rephrase them using different derivatives.

Verbs	Adjectives	Nouns
I.		definition
2.		economics
3.		Item
4.		society
5.		Stock
6.		Use
7. to compete
8.to distribute
9.	vital

Ex. 6. Choose the words with similar meaning from the two lists.

1. Concept, connotation, definition, goods, ingredient, item, resources, scarcity, use, wealth, vital.

2. Articles, conception, association, determination, supplies, component, point, shortage, richness, application, life.

Ex. 7. Form all possible word combinations using the words of the both columns and translate them into Russian. Make up sentences about economy and economics using these word combinations.

deprived scarce vital limited distribute be concerned with economic increase evaluate assemble

resources goods people ingredients choice welfare wealth definition stock use

Ex. 8. Complete the sentences with the words from the box below.

limited resources, scarcity, wealth, society, to distribute, means, the concept

1. Economics is a theory of how … works.

2. We have … ….. in rich and poor countries.

3. The guiding idea in economics is … .

4. One of the primary concerns of economics is to increase the … of a society.

5. Once we have produced goods and services we have to decide how … … them.

6. By wealth the economist … all the real physical assets.

7. … … of welfare is concerned with the whole state of well-being.

Ex. 9. Make up your own text using the following words and word combinations.

Economics, comprehensive theory, society, the guiding idea, scarcity, not enough resources, to want more, to fill everyone’s wants.

COMPREHENSION

Ex. 1. Complete the sentences using information from the text.

1. Economics is as old as …….

2. Economics as an academic discipline is relatively new: the first major book on economics Adam Smith’s …..

3. Economics is a comprehensive theory of ….. .

4. The guiding idea in economics is ….. .

5. The word ‘scarcity’ means that all resources we use are ….….. .

6. The economist’s job is to evaluate the choices that exist for ……… .

7. People, scarcity and choice are the three … ……… of economics.

8. One alternative definition of economics is that it is the study of …. .

9. One of the primary concerns of economics is to increase ….. .

10. The concept of welfare is concerned with …. .

11. The three fundamental questions of economics according to the great American economist Paul are ….

Ex. 2. Say if the statements are true or false. Correct the false ones.

1. There cannot be any complete definition of economics.

2. There are three vital ingredients in the definition of economics: people, scarcity and natural resources.

3. Scarcity means that the poor feel deprived while the rich enjoy all the resources.

4. The concept of welfare includes the notion of wealth and is concerned with the whole state of well-being.

Ex. 3. Work in pairs. Ask questions using 1 – 10 and answer them.

1. if economics is as old as the human race;

2. what branches of economics there are;

3. what economics is;

4. what the definition of Alfred Marshall is;

5. what the guiding idea is;

6. who feels deprived;

7. if we have limited resources both in rich and in poor countries;

8. what people want;

9. how we could define economics;

10. about one of the primary concerns of economics.

Ex. 4. Specify the difference between wealth and welfare. What is their role in the economy?

Ex. 5. Speak about economics and how it serves society using the information obtained from the text.

Ex. 6. Having learnt about the subject of economics, can you say how a country’s economy works?

T E X T 2