Services

Below are 20 kinds of people. Ten of them produce goods; ten produce services. Make a diagram like this one and list the people under goods and services.

musician

doctor

nurse

cook

policeman

coal-miner

teacher

steelworker

shopkeeper

electrician

cattle-breeder

pilot

shoemaker

horse-breeder

builder

farmer banker fruit-grower fisherman iron-ore miner

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UNIT 2

The Science of Economics

UNIT 2

2

a b

c

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Text A

Economics is a science.

This science is based upon the facts of our everyday lives.

Economists study our everyday lives.

They study the system which affects our lives.

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The economist tries to describe the facts of the economy in which we live.

He tries to explain how the system works.

His methods should be objective and scientific.

We need food, clothes and shelter.

If we could get food, clothes and shelter without working, we probably would not work.

But even when we have these essential things, we may want other things.

If we had them, these other things (like radios, books and toys for the children) might make life more enjoyable.

The science of economics is concerned with all our material needs and wants.

It is not just concerned with basic needs like food, clothes and shelter.

Exercises

a b

What is economics? What is it based upon?

1 Answer these questions, basing your answers on the text.

c

What two things do economists study?

get these essentials without

working?

What might make life more

enjoyable ?

What is economics concerned

with?

d e fI

gh

What do they try to do ?

i j

What do they try to explain ?

What should the methods of the

economists be like ?

What three essential things do

we need?

What would happen if we could

Study the example. It shows how a conditional sentence is organ­ized. Do the same with the pairs of sentences which follow.

d e

X =

Y =

X =

Y =

EXAMPLE X = We have money. Y = We can buy food. If X, Y = If we have money, we. can buy food.

X =

Y =

X =

Y =

X =

Y =

The economic system of a country is strong. The people will be able to satisfy their wants. He wants to become an economist. He must study economics books.

We have a radio..

We can listen to the

programmes.

We have food, shelter

and clothes.

We have the basic

necessities of life.

You want to get new

clothes.

You must earn some

money.

Now turn the sentences of Exercise 2 completely round.

EXAMPLE Y = We can buy food. X = We have money. Y, if X = We can buy food, if we have money.

Punctuate the following passage. Provide capital letters, commas, full stops, brackets, colons etc., where applicable.

most people must work to earn their living they produce goods and services this is called economic activity all economic activities together make up the economic system this system is very complex economists study the economic system and try to describe and explain it they study the work we do and the needs we have if you wish to learn about the science of economics you must study both books and people

You have now used the three words economics, economic and economist. There are also in this set the words economical, econo­mically and economy. In a diagram we can show them like this:

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