I. Mind the use of the words: economy, economics, economic, economical, economize.
1. 5,3 million people contribute to the economy of Belarus. Britain’s economy is increasingly based on services. 2. Economy can also mean the deliberate saving of money through carefully – controlled spending. 3. Economics is the scientific study of a society’s money, industry and trade. She studied economics at the University. Economics is a singular noun. 4. Economic means related to the economy: The 2011s and 2012s were a period of economic crisis. 5. If something is economical it does not require a great deal of money to operate: The electric car is more economical in its use of energy than an ordinary one. 6. The verb «economize» means to save money: Many try to economize on fuel.
II. Complete the blanks.
1. Mars and Keynes are two famous …s. 2. Those people are studying the science of … . 3. We sometimes call a person’s work his … activity. 4. People should be very … with the money they earn. 5. The economic system of a country is usually called the national … . 6. The people in that town live very … .
III. In these sentences, certain nouns are printed in bold. Change them into adjectives which can be used in the blanks.
1. These goods belong to the nation. They are therefore …. 2. Minerals are a part of nature. They are therefore … . 3 Schools provide education. They are therefore … . 4. Shops are places of commerce. They are therefore … centres of … activity. 5. He does not want anyone else to do this work. He wants to do the work in person. It is his … concern. 6. The government define monetary policy. By …, banks are institutions which accept money from people. 7. People produce both goods and services. Economics is the social science that studies the …, distribution and consumption of goods and services.
IV. Say whether these statements are true or false, and if they are false say why.
1. Economic resources are unlimited. 2. Economics is a science that studies only the production of goods. 3. The term economics comes from the Romans. 4. Economic resources are classified as material and labour resources. 5. Macroeconomics examines the economy as a whole. 6. Microeconomics is focused on the activity of firms and consumers. 7. Every economic society has to answer six fundamental questions. 8. The science of economics is based upon the facts of our everyday lives. 9. Welfare economics does not concern microeconomics. 10. Welfare economics examines the economic activities of the individuals. 11. Economics is a vital discipline for business. 12. A basic understanding of economics is essential for citizens.
V. Answer these questions.
1. Does life require that we have a basic knowledge of economics? 2. Why is economics of practical value in business? 3. How may economic resources be classified? 4. Why do we have to save resources? 5. Is economic environment determined by the economic policies of the government? 6. What does economics study? 7. How are areas of economics classified? 8. What does macroeconomics examine? 9. What is microeconomics focused on? 10.What fundamental questions does every economic society have to answer?