- •Text 1. History of economic thought
- •1Complete each sentence with a word or phrase from the box.
- •2 Now read the text again and decide whether these statements are true or false.
- •Exercises
- •1 Choose the correct answer a, b or c from the list below.
- •3. Discuss these questions with your partner.
- •Exercises
- •1.Complete each sentence with a word or phrase from the box.
- •Exercises
- •1.Match the words and phrases with the definitions.
- •2.Now read the text again and answer these questions in your own words in the space provided below.
- •3.Now listen and tick which transactions in the list are mentioned.
- •Exercises
- •1. Choose the correct answer a, b or c from the list opposite.
- •2. Now read the text again and choose the sentence which best summarises each paragraph.
- •3.Discuss this question with your partner.
- •Exercices
- •1.Match the words and phrases with the definitions.
- •2. Now read the text again and decide whether these statements are true or false. If the statement is false, correct it.
- •3.Discuss this question with your partner.
- •4. Try to complete this paragraph about autarchies by using words from the box.
- •Exercises
- •1.Match the words with the definitions.
- •2.Now read the text again and match each paragraph with the correct heading.
- •Exercises
- •Match the words and phrases with the definitions.
- •3. Discuss these questions with your partner.
- •Exercises
- •1. Answer the questions.
- •2. Choose the necessary word and put in the sentence.
- •Exercises
- •1.Choose the correct answer a, b or c from the list opposite.
- •2. Now complete each sentence with words. Then listen and check your answers.
- •4. Discuss the following with your partner.
- •Exercises
- •1.Now read the text again and answer these questions in your own words in the space provided below.
- •2 Choose the correct answer.
- •In the real economy:
- •Exercises
- •I. Match the words with the definitions.
- •II.Now read the text again and complete the sentences below in your own words in the space provided.
- •III. Discuss these questions with your partner.
- •Dialogue
- •Exercises
- •1.Choose the necessary word and put it in the sentence.
- •Answer the questions.
- •Make transformations according to the model.
- •Exercises
- •Answer the questions.
- •2. Choose the necessary word and put it in the sentence.
- •Exercises
- •1. Change the sentences according to the model.
- •Make up the conditional sentences.
- •3. Answer the questions.
- •Exercises
- •Dialogue
- •Exercises
- •Exercises
- •1.Complete each sentence with a word or phrase from the box.
- •3 Now listen and complete the summary with words or numbers.
- •5. Give a two-minute talk on price. First make notes below on the following.
- •6. Imagine that you’ve got a good idea for an Internet commerce site (an Internet site which is also a business).Tell your friend what your idea is.
- •Dialogue
- •Change the sentences according to the model.
- •2. Change the sentences according to the model.
- •3. Answer the questions.
- •4. Make sentences interrogative and negative.
- •5. Choose the necessary modal verb and put it in the sentence.
- •1. Complete each sentence with a word.
- •Exercises
- •Dialogue
- •Exercises
- •Change the sentences according to the model.
- •3. Answer the questions.
- •Exercises
- •Dialogue
- •Exercises
- •I. Transform the sentences according to the model.
- •III. Answer the questions.
- •I. Answer the questions.
- •II. Select the necessary word in the sentence.
- •Dialogue
- •Exercises.
- •Exercises
- •I. Answer the questions.
- •Dialogue
- •Exercises
- •III. Answer the questions.
- •Exercises
- •1. Answers the questions.
- •2. Choose the necessary word and put.
- •3. Put the verbs in brackets into the proper present tense
- •Dialogue
- •Exercises
- •Transform the sentences according to the model.
- •Exercises
- •Exercises
- •II. Read the text again and choose the best answer or answers for each question.
- •Informal letter
- •Iy Work in groups of three or four. Imagine you and your friends are running the country.Things are not going well! Here are some of your problems.
- •Dialogue
- •Exercises
- •Give affirmative and negative answers to the questions.
Exercises
1. Choose the correct answer a, b or c from the list opposite.
1 In many ways life for previous......................was
much more difficult.
2 Home......................has increased in many parts of Europe.
3 When the economy grows dangerously fast, we say it.......................
4 A......................is when the economy is growing quickly.
5......................are fairground rides like trains that go up and down very fast.
6......................in technology in the last 30 years has been incredible.
7......................is when you get better after something bad like an illness – or economic depression.
8 When you......................you fight or work hard for something.
9 Don’t buy anymore milk. We’ve got......................in the fridge.
A fortunate person is very.......................
11 Mountain climbers are people who enjoy a…….
12 The......................is the government minister responsible for the economy.
13......................growth is growth that can continue for a long time.
2. Now read the text again and choose the sentence which best summarises each paragraph.
PARAGRAPH 1
A Economic growth does not happen everywhere.
B Economic growth did not happen in the past.
C Economic growth happens only in pecializingd countries.
PARAGRAPH 2
A GNP and economic growth are the same thing.
B An increase in GNP always means the
economy is growing.
C An increase in GNP may not show economic growth.
PARAGRAPH 3
A All growth is good. B Fast growth is good.
C Steady growth is good.
PARAGRAPH 4
A The majority of economists believe three factors positively influence economic growth.
B Economists are sure about what causes economic growth.
C Economists have no idea about what causes economic growth.
PARAGRAPH 5
A_ The economy needs more raw materials to grow.
B The economy needs more machines and factories in order to grow.
C The economy needs more labour to grow.
PARAGRAPH 6
A For economic growth there needs to be more spending and less saving.
B For economic growth there needs to be more saving and less spending.
C For economic growth there needs to be the right amount of saving and spending.
PARAGRAPH 7
A Technology creates more raw materials with less labour.
B Technology creates greater output from the same amount of capital, labour and materials.
C Technology creates more labour with fewer raw materials.
3.Discuss this question with your partner.
What do you think makes an economy grow?
Text 7. The open economy
All through history, people from one society have been trading with people from another. Three thousand years ago, for example, the Phoenicians of the Mediterranean built an economy almost completely on foreign trade. In the jargon of economics, the Phoenicians had an open economy, and almost every economy since theirs has been open too.
When an economy is open, this basically means that it imports and exports goods and services. What are the benefits of doing this? First of all, if you trade with other economies, you can import goods that do not exist in your economy. These may be products that your economy cannot manufacture, but they may also be raw materials. With a wider range of raw materials, an economy is able to use its capital and labour to produce a wider range of products. In this way, importing can actually help an economy grow. What’s more, if you allow imports from other countries, then you will have trading partnerships. This means that you can export to countries. If you have customers all over the world, your economy will grow faster.
Open economies arc good for consumers, too. If the economy allows imports from abroad, there will be a greater variety of goods available locally. When products arc available locally, imports of the same products should help to keep prices down and quality high. This is because local companies will have to compete with foreign companies, and more competition will mean better quality and greater value for money.
Economists describe imports and exports of material products as visible – because you can really sec and touch them. Examples of visible exports and imports are food stuffs, furniture and electronic equipment. However, there are also invisible imports and exports. These are mainly services, but can include all sorts of things. Examples of invisible exports and imports include banking services, insurance products, educational courses and tourism.
Opening up economies, however, does bring problems. One of the main difficulties is keeping a good balance of trade. Every time a country manages to sell a product or service abroad, this means money will flow into the economy. On the other hand, every time someone buys from abroad, money flows out of the country. Over time, if the flow of money out of the economy is greater than the flow of money into the economy, then there is a trade deficit. This is not a good situation to be in. The challenge for governments is to keep the flow of trade equal in both directions, or to achieve a trade surplus. This is when total exports are greater than total imports.