Individuals, groups, business enterprises, and governments seek to achieve efficiently any

economic objective they select.

Standard economics can be divided into two major fields. The first, price theory or

microeconomics, explains how the interplay of supply and demand in competitive

markets creates a multitude of individual prices, wage rates, profit margins, and rental

changes. Microeconomics assumes that people behave rationally. Consumers try to spend

their income in ways that give them as much pleasure as possible. As economists say, they

maximize utility. For their part, entrepreneurs seek as much profit as they can extract

from their operations.

The second field, macroeconomics, deals with is modern explanations of national

income and employment. Macroeconomics dates from the book, The General Theory of

Employment, Interest, and Money (1935), by the British economist John Maynard

Keynes. His explanation of prosperity and depression centers on the total or aggregate

demand for goods and services by consumers, business investors, and governments.

Because, according to Keynes, inadequate aggregate demand increases unemployment,

the indicated cure is either more investment by businesses or more spending and

consequently larger budget deficits by government.

2. Agree or disagree with the following statements:

1) Nowadays all young people know they can have everything.

2) Every year politicians argue on how to spend their taxpayers money.

3) Economics is a political science as it reveals and analyses the government

policy.

4) One of the common definitions of economics is “the study now people

make money”.

5) We have seen that economics deals with the problems of scarcity and

choice.

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3. Read the text and answer the questions:

1)

2)

3)

4)

5)

6)

What do people discover when they grow older?

What definitions can we give to the term “economics”?

Why should we study economics?

Where can we apply our knowledge of economics?

What major fields can be standard economics divided into?

What is macroeconomics?

4. Match the words with the definitions below.

Purchase, scarce, commodity, income, manage, employ, demand

1) An article or raw material that can be bought and sold

2) Buy, obtain or achieve at some cost.

3) The desire of consumers for a commodity.

4) Hard to find, rare.

5) The money or other assets received periodically or in a year.

6) Use the services of a person in return for payment.

7) Regulate, be in charge of business.

Speaking

1. Speak on:

1)

2)

3)

4)

The definition of economics.

The reasons to study economics.

The role of economics in the development of modern societies.

The importance of microeconomics and macroeconomics.

Pre-reading task

Marketing brainteasers

1. Which terms are defined below?

Take the first letter of each to find the missing word. (This may then help you

remember the terms in future)

1) The business function that keeps an organization focused upon its

customers wants and needs.

2) The specific goals or targets a firm sets itself.

3) The medium-long term plan for meeting those goals.

4) Short-term actions in response to specific opportunities or threats.

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Reading

1. Read the text and discuss the questions.

1)

2)

3)

4)

What is a brand?

What is important in firm’s marketing strategy?

What approaches are used by firms to develop branding?

How is brand created?

A BRAND

A brand is the name given by a business to one or more of its products.

Branding gives products an identity that distinguishes them from similar products by

rival firms. It helps to generate brand loyalty, encouraging customers to regularly

purchase particular products. The demand for a product with strong brand loyalty

tends to become less price sensitive, meaning that price can be increased without

losing much demand. Selecting a brand name is therefore a very important part of a

firm’s marketing strategy.

Organizations can use a number of different approaches to branding: