Ex. 17. Group the following words into ten synonymous groups
choice want currency work desire
community goods option shortage labour
enterprise extravagance cash alternative money
luxury company ground deficit society
land firm scarcity wish population
COMPREHENSION
Ex. 18. Multiple choice. In the space provided, write the letter of the item that best
Complete the statement.
____ 1. The main idea of this chapter is that
a. human wants are limited
b. resources are unlimited
c. individuals must make choices as they use their scarce resources.
d. only undeveloped countries face the problem of scarcity.
____ 2. When economists speak of the need to economize, they are taking about
a. saving.
b. getting the most from what you have
c. studying economics
d. spending as little as possible.
____ 3. Scarcity is a condition that
a. exists only in poor countries.
b. only poor individuals experience.
c. all individuals and societies face.
d. rich people never experience.
____ 4. Which of the following would be a good in the economic sense?
a. a haircut.
b. a pair of scissors.
c. a visit to a doctor.
d. advice from a lawyer.
____ 5. Labour, to the economists, is
a. organizing a business and managing the operation.
b. anything generally accepted in exchange for property, goods or services.
c. the physical and mental effort needed to produce goods and services.
d. owned, with the other factors of production, by the company using it.
Ex. 19 . Complete the following sentences using the information from the text.
1. Everyone goes through life …
2. Neither individual, nor societies …
3. Scarcity is imbalance between …
4. Human wants are unlimited but …
5. Although there are a lot of goods on sale …
6. Printing more money does not …
7. All choices involve …
Ex. 20. Say if these statements are true or false. Correct the false ones.
1. When there are a lot of goods on sale you don’t have to limit your choice to one or two.
2. Both individuals and societies can have all the things they would like to have.
3. The problem of scarcity is faced by only poor societies.
4. Resources necessary to satisfy people’s wants and needs are unlimited.
5. The real economic problem is shortage of money.
6. Labour is the efforts of people needed to make products.
QUESTIONS FOR DISCUSSION
1. Classify each resources listed below as one of the factors of production by placing the letter of the “factor” in the place provided.
A. Land (Natural Resources) B. Labour
C. Capital D. Enterpreneurship / Management
____ a. auto mechanic ____ b. tractor
____ c. corn field ____ d. corporate officer
____ e. computer ____ f. dentist
____ g. school teacher ____ h. salesperson
____ i. machine tools ____ j. copper
____ k. sheep (wool) ____ l. painter’s ladder
____ m. service station owner
2. Economists like to use Robinson Crusoe as their example when they talk about scarcity. Crusoe faced a hostile (враждебный) world when his ship sank. How was he going to overcome scarcity?
GRAMMAR FOCUS
Ex. 21. Put the verbs in brackets into the correct tense form.
1. In many countries economic development ____________________(to lead) to periods of
rapid population growth.
2. We _____________________________(to develop) this product for three years.
3. As soon as we _______________________(to install) the new line, productivity went up.
4. In 2010 the plant ________________________________________(to manufacture) this car
model for ten years.
5. When the company joined the New York stock market, it ______ already ___________ (to be)
on the London market for 5 years.
6. She ____________________ (to work) for “Procter & Gamble” at the moment.
7. She ____________________ (to work) for ABC when the merger (слияние) took place.
8. ___________ you ______________(to choose) the advertising agency yet?
9. The company _____________________(to cover) all losses by the end of the month.
10. They _________________ (to reward) their employees once a year.
Ex. 22. Complete the following sentences with one of the time prepositions below.
over ago on in at since for
1. He’s been off work __________ three months.
2. He ought to have retired a year __________.
3. She’s been with the company ______________ it began.
4. She left the country _________ 14.00 __________Tuesday.
5. We didn’t receive the delivery _____ time.
6. _______the beginning of the year, prospects looked good.
7. There was a downturn _______ the middle of March.
8. _______2007 our prices have been falling.
FINAL QUESTIONNAIRE
1. What sort of mechanism is economy?
2. What is economy?
3. What sort of issues must all societies deal with?
4. What is economics?
5. What subjects were taught in the universities in 1500th?
6. What was the answer to question “Why am I poor?” in Pre-Enlightenment period?
7. What word does the word “economics” derive from?
8. What does Greek word “oikonomika” mean?
9. Who made the extraordinary contributions in economics?
10. Whose contributions in economics are considered the most important?
11. What did Adam Smith’s work “The Wealth of Nations” found?
12. Which Adam Smith’s work founded economic science?
13. What major economic thinkers do you know?
14. When did Karl Marx’s work “Capital” appear?
15. What did Karl Marx proclaim in his work “Capital”?
16. Name five tangible and intangible things.
17. How do things get to us?
18. What constrains does every society face at any moment in time?
19. How are societies differ in terms of constrains (limits) provided by nature and previous
generations?
20. Why are some countries rich and why are some poor?
21. What do young people discover when they grow older?
22. Why do we have to limit our choice to one or two things on sale?
23. What answer will most people give to question “Why are there so many wants and needs
that we cannot satisfy?”
24. Is shortage of money the real economic problem?
25. If the government decides to print more money will it solve the economic problem of
a country?
26. Does printing more money produce more goods and services?
26. What will happen if the government decides to print more money and thus to double all
of the incomes of everybody?
27. What is the real cause of shortage of goods and services in a country?
28. How many factors of production are there? What are they?
29. What people do we call entrepreneurs?
30. What economic problem arises because the factors of production are limited in supply?
31. Why do we have to make choices every day?
32. What do all choices involve?
33. What would happen if the factors of production were not scarce?
34. In what case could we have everything we wanted?
35. What is “opportunity cost”?
36. What problem does economics deal with?
37. Is the problem of scarcity faced by only poor societies?