Vocabulary Focus

Easily confused words: economic / economics / economy / economical / economist / economize.

Study the explanations of the words.

Economic means concerned with the organization of the money, industry, and trade of a country, region, or social group. A business that is economic produces a profit.

Something that is economical does not require a lot of money to operate. If someone is economical, they spend money carefully and sensibly. Economical also means using the minimum amount of something that is necessary.

Ex. 1. Complete the following sentences with the appropriate word from the list below.

economic economical

economics economist

economize economy

1. A good manager is _____ in the use of his funds.

2. An _____ person saves money and expense wherever possible.

3. An _____ is a person who studies, teaches, or writes about economics.

4. By exercising strict _____ he saved enough money to retire early.

5. By using _____ in buying food and clothes, we were soon able to save money for the new car we needed.

6. _____ is a social science concerning behavior in the fields of production, consumption, distribution, and exchange.

7. In times of difficulties we all have to _____.

8. It is much more _____ to buy in bulk.

9. Nations experience different rates of _____ growth.

10. The country is in the period of _____ and industrial crisis.

Ex. 2. From two columns choose the words with similar meaning and arrange them in pairs.

A	B
scarcity	insufficiency / shortage
goods	merchandise
degree of merit	manufacture
economical	quality
production	work done for somebody or something
service	infinite
unlimited	option
choice	thrifty
pervasive	all-encompassing

Ex. 3. From two columns choose the words with opposite meaning and arrange them in pairs.

A	B
wealth to satisfy scarcity to raise to improve to spend revenue macro	abundance poverty to dissatisfy to lower to make worse to economize expenditure micro

Ex. 4. Form the following pairs of derivatives and memorize them.

V 	N	N 	A
govern apply grow	provision improvement development	threat economics nation	wealthy scientific

Ex. 5. Match English and Russian equivalents.

A	B
удовлетворять каждое (любое) желание столкнуться с проблемой редкости (нехватки) перспективный взгляд размещать ресурсы вечная проблема существенный экономический рост улучшать качество быть неудовлетворенным богатый индивидуум способность экономики неудовлетворенные потребности	to face the problem of scarcity to satisfy every desire unsatisfied wants conomy’s ability an affluent individual to be dissatisfied to improve the quality substantial economic growth perpetual problem to allocate resources perspective overview

Comprehension

Ex. 1. Expand the sentences, using the text.

1. Our world is a finite place where people … .

2. Scarcity is the condition in which… .

3. Economics is the study of how … .

4. Macroeconomics is the branch of economics that … .

5. Microeconomics is … .

Ex. 2. Choose the right variant.

1. The condition of scarcity:

   1. cannot be eliminated.

   2. prevails in poor economies.

   3. prevails in rich economies.

   4. all of the above.

   5. none of the above.

2. The condition of scarcity can be eliminated if:

   1. people satisfy needs rather than false wants.

   2. sufficient new resources were discovered.

   3. output of goods and services were increased.

   4. all of the above.

   5. none of the above.

3. The subject of economics is primarily the study of:

   1. the government decision-making process.

   2. how to operate a business successfully.

   3. decision-making because of the problem of scarcity.

   4. how to make money in the stock market.

4. Which of the following is included in the study of macroeconomics?

   1. Salaries of college professors.

   2. Computer prices.

   3. Unemployment in the nation.

   4. Silver prices.

5. Microeconomics approaches the study of economics from the viewpoint of:

   1. individual or specific markets.

   2. the national economy.

   3. government units.

   4. economy-wide markets.

Text 2

As you read the text, underline the main ideas and supporting information in reference to opportunity cost.