Vocabulary Focus

1. Match the words on the left with their synonyms on the right.

1. scarce a. evaluate

2. economize b. save

3. costs c. price

4. assess d. limited

5. cost e. expenses

2. Use the words from the list of Useful Vocabulary to complete the sentences.

1. Those who make financial contributions to firms for the ..... of earning profit are known as investors.

a. growth

b. purpose

c. supply

2. Good managerial work is of great ….. for obtaining high profits.

a. value

b. opinion

c. scarcity

3. In a free market economy producers try to ….. all consumers’ tastes.

a. prevent

b. demand

c. satisfy

4. Opportunity ….. are to be calculated for labor and financial capital used in production.

a. costs

b. decisions

c. choices

5. The purpose of governmental regulations is to allocate ….. resources rationally.

a. expensive

b. efficient

c. scarce

3. Give the English equivalents to the following expressions.

развивать концепцию

играть важную роль

дефицитные ресурсы

управление временем

выбор потребителей

оценить стоимость

Talking Points

1. Try to explain the term “opportunity cost” in your own words.

2. Discuss the following issues in small groups and then report your findings.

a. What is the opportunity cost involved in a decision to continue education after finishing school?

b. What was the opportunity cost of your latest major purchase?

Summary Points

1. Revise the list of basic steps in summarizing.

1. Skim the original text and identify its main idea.

2. Divide the text into logically completed parts.

3. Read the text again and draw up an outline of the text.

4. Give a one-sentence summary of each item of the outline in your own words.

5. Find in the original text the most important details that may be added to support the main points.

6. Use appropriate words and phrases to show the logical connection between the parts of the summary.

2. Divide the phrases for summarizing into 3 groups and fill in the table.

Introduction	Main Body	Conclusion

The author comes to the conclusion that ………

Thus ………

The author thinks that ………

According to the author………

On the one hand ……… on the other hand ………

The text deals with ………

The basic topic is ………

The author notes that ………

After reading the text we realize the fact that ………

3. Summarize the text from Reading. Use phrases for your summary from Task 2.

Unit 7 money

Lead-in

1. Do you agree with those who say that time is money? Give your arguments.

2. In your opinion, what’s the best way of making a lot of money?

3. In our everyday lives we often refer to “money” as one of three things: coins and paper money (currency); a person’s wealth; a person’s income. Using this vocabulary and working with a partner, try to define the term ‘money’.

Key Vocabulary

1. Study the following vocabulary.

1. transaction n	сделка
2. commodity money	товарные деньги
3. fiat money	неразменные деньги (деньги, не имеющие реального обеспечения в форме драгоценных металлов)
4. coin n	монета
5. value n	ценность, стоимость
6. checking account	текущий счёт (в банке)
7. savings account	сберегательный счёт
8. exchangeable adj	подлежащий обмену
9. durable adj	постоянный, с длительным сроком службы
10. valuable adj	имеющий ценность
11. medium of exchange	средство обмена
12. facilitate v	облегчать, способствовать
13. barter n,v	товарообмен; менять, обменивать
14. store of value	средство сбережения
15. unit of account	мера стоимости (единица измерения)
16. purchase v	покупать, приобретать
17. to conduct a transaction	проводить торговую операцию, сделку
18. supplier n	поставщик
19. purchaser n	покупатель
20. eliminate v	устранять
21. division of labour	разделение труда

2. Mind the following irregular plural nouns:

• money is used only in the singular (в единственном числе), e.g. Where is my money? This money is mine. Money makes money.

• medium – media - средство - средства

Pre-reading Activities

1. In your “Key Vocabulary”, find synonyms and antonyms to the words below. Use a dictionary and learn this vocabulary.

Give synonyms to:	Give antonyms to:
buy v	temporary adj
buyer n	valueless adj
exchange v	seller n
deal n

Reading

Read the text and get ready to define all the types and functions of money.

Money is any good that is widely used and accepted in transactions involving the transfer of goods and services from one person to another. Economists differentiate between three different types of money: commodity money, fiat money, and bank money.

Commodity money is a good whose value serves as the value of money. Gold coins are an example of commodity money.

Fiat money is money that has value only because of the government regulation or law. Dollar bills are an example of fiat money.

Bank money is the balance held in checking accounts and savings accounts. Bank deposits usually form the larger part of the money supply of a country.

Some people may think that money's function is limited to one use — to buy things. Money actually has three functions, which allow money to be exchangeable, durable, and valuable. Classically it is said that money acts as a medium of exchange, a unit of account, and a store of value.

The most important function of money is as a medium of exchange to facilitate transactions. Without money, all transactions would have to be conducted by barter, which involves direct exchange of one good or service for another. The difficulty with a barter system is that in order to obtain a particular good or service, a person has to possess a good or service of equal value, which the supplier also desires.

In order to be a medium of exchange, money must hold its value over time; that is, it must be a store of value. But as a store of value, money is not unique; many other stores of value exist, such as land, works of art, stamps.

Money also functions as a unit of account, providing a common measure of the value of goods and services being exchanged. Knowing the value or price of a good, in terms of money, enables both the supplier and the purchaser of the good to make decisions about how much of the good to supply and how much of the good to purchase.

Today money is considered one of the outstanding inventions of the entire history of mankind. The introduction of money has eliminated all the difficulties of a barter system, it has made easy to save wealth for future, and has played a significant role for the specialization in business through the division of labour. Although money itself creates nothing, it is very helpful in the process of production, consumption and exchange.

Comprehension Check

1. Say whether these statements are True or False:

1. Economists differentiate between three different types of money: commodity money, a store of value, a unit of account.

2. Commodity money is a medium of exchange that may be transformed into a good, useful in production or consumption.

3. Bank money is money that has value only because of the government regulation.

4. The function of money is limited to one use — to buy things.

5. Barter involves direct exchange of one good or service for another.

6. The most important function of money is a store of value.

7. There are many different stores of value.

8. Knowing the value or price of a good enables suppliers and purchasers to make different decisions.

2. Read the text more carefully and complete the following statements. In some cases more than variant is possible.

1. Money is … .

2. Commodity, fiat and bank money are … .

3. Bank money is … .

4. Money can be … .

5. Without money … .

6. … in order to be a medium of exchange.

7. As a unit of account, money … .

8. The introduction of money … .

3. Prepare to speak about money. Firstly, complete the following plan of the text.

1. Different types of money:

a. ……

b. ……

c. ……

2. …….

a. ……

b. Money as a store of value.

c. ……..

3. ………