1) Say which sentences are correct, which are false.

1. Economists are concerned with the study of people.

2. Economists are interested in how people provide them selves with goods and services.

3. In studying a society’s economic system, economists look for three questions.

4. All three questions refer to production of goods.

5. One important factor that helps to determine a society’s answer to the three questions is the values of the culture of the society.

6. A society usually works out an economic system closely related to its culture.

2) Answer the questions to the text:

1. What are economists interested in?

2. What must every human society solve?

3. What questions do the economists have to answer in studying a society’s economic system?

4. What are the factors that help to determine the society’s economic system?

5. What role does culture play in answering the basic economic question?

Goods and Services - Economic Products

New vocabulary:

to be concerned - займатися;

relatively scarce - відносно обмежений;

consumer goods - споживчі товари;

include - включати;

to be intended for – призначатися;

to perform – виконувати;

free products – вільні продукти;

to own – володіти;

home appliances – технічні прилади домашнього вжитку.

The study of economics is concerned with economic products –goods and services that are useful, relatively scarce and transferable to others. The important thing is that economic products are scarce in an economic sense. That is one cannot get enough to satisfy individual wants and needs. The fact that economic products command a price shows that they have these characteristics.

The terms “goods” and “services” are used to describe many

things people desire. A consumer good is intended for final use by individuals to satisfy their wants and needs. A manufactured good used to produce other goods would be a computer in a school.

The other type of economic product is a work that is performed

for someone. Services can include haircuts, repair of home appliances and forms of entertainment like rock performances. They also include the work performed by doctors, lawyers and teachers. The difference between a good and a service is that the service is something that cannot be touched or felt like a good.

Many other things – sunshine, rainfall, fresh air are known as free

products because they are so plentiful. No one could possibly own them, nor would most people be willing to pay anything for them. In fact, some are so important, that life would be impossible without them. Even so, free products are not scarce enough to be major concern in the study of economics.

1) Choose a correct word and put it into the sentence:

free products	to be concerned	consumer good
scarce	own	include

1. Economics is … with economic products-goods and services.

2. The economic products are … in an economic sense.

3. A … is intended for final use.

4. Services can … haircuts, forms of entertainment’s repair of home appliances.

5. Sunshine, rainfall, fresh air are known as …

6. No one could … free products.