ECONOMICS AND ECONOMY

(KEY TERMS)

RB, p. 9-13

THEY ACHIEVED ECONOMIES OF SCALE.

PRINCIPLES OF ECONOMICSTHE CHINESE

ECONOMYECONOMICAL CAR

ECONOMIC

CRISIS

A DISTINGUISHED ECONOMIST

AN EFFICIENT BUSINESSMAN

A BOOMING BUSINESS

A GROWING COMPANY

→RB,p.9

FLY ECONOMY

THE FOOD BUSINESS

ECONOMIZE ON WATER

ECONOMY

PACK

CAN YOU DEFINE ECONOMICS?

a science

describe

analyse

production

distribution

consumption

goods and services

ECONOMICS (noun)

a social science which describes and analyses the production, distribution, and

consumption of goods and services

PROCESS VERB PERSON

ANALYSIS

PRODUCTION

DISTRIBUTION

CONSUMPTION

PRODUCE PRODUCER

DISTRIBUTE DISTRIBUTOR

CONSUME CONSUMER

ANALYZE ANALYST

UNJUMBLE THE BASIC ECONOMIC PROBLEM

human wants /Economics /tries to/ how society /allocates / its scarce resources /since / are unlimited. /understand/

Economics tries to understand how society allocates its scarce resources since human wants are unlimited.

ECONOMY v. ECONOMICS

An organized system for the production, distribution and consumption of wealth.

v.

A social science which describes and analyses the production, distribution, and

consumption of goods and services.

ECONOMICS OR ECONOMY?

1. Huge job losses to hit Welsh _______

2. The MIT ______ Department today is a vibrant collection of faculty and students.

3. Federal Reserve officials may signal that the U.S. _____ has started to recover.

4. Behavioral ____ studies how real people actually make choices.

5. ______ Car Hire Ltd offers low-cost car hire in Cyprus.

6. Thomas J. Sargent is a Professor of ______.

7. The website is designed for people who fly _____ class.

A BUSINESSMAN AN ECONOMIST

makes money

develops theories

analyses financial statements

predicts trends

studies the society

runs a business

sets up a business

If an economist decides to stay in an economy hotel does he

economise?

ANOTHER MEANING OF “ECONOMY”

NOUN

He achieved a small economy by walking to

work instead of taking a bus.

the careful and efficient use of money,

goods, time etc. so that nothing

is wasted

“ECONOMY” AS ADJECTIVE

• An economy hotel, class is cheaper than other

things of the same type.

• An economy size box contains more than a

normal product and is cheaper compared to the

normal size product.

Is it more economical to have a bath than a shower in times of economic crisis?

ECONOMICAL….

…ECONOMIZES.

ECONOMIZE (AmE)/ ECONOMISE (BrE)

47 Proven Ways To Economize At Home During Recession and Economic Hard

Times*

to reduce the amount of time, money, goods etc. that you use

http://frixya.com/general/47-proven-ways-to-economize-at-home-during-recessioneconomic-hard-times

Can you go out of business if you

never set up your own business?

BUSINESS

Some smaller companies went out of business last year due to recession.

We do business with Russia.

He runs a business restoring old cars.

Studiram ekonomiju jer želim postati ekonomist. Zato proučavam situaciju u hrvatskom i svjetskom gospodarstvu. Ekonomska kriza me posebno zanima. To je bitno ekonomsko pitanje.

Želim zaraditi pa sam osnovao firmu. Poslujem s Rusijom.

Zbog krize nastojim štedjeti na benzinu, a letim ekonomskom klasom.

RB, p. 10, 11

PRACTISE

ECONOMY, ECONOMIC, ECONOMICAL, ECONOMIZE?

1. True individual freedom cannot exist without

________ security and independence.

2. E_______ Man (Homo Economicus) makes logical,

rational, self-interested decisions that weigh costs

against benefits and maximize value and profit to

himself.

3. When the _______ is stable, society develops.

4. An ________ car is a car designed for low cost

operation.

ECONOMY, ECONOMIC, ECONOMICAL, ECONOMIZE?

5. The onset of the ______ crisis took most people

by surprise.

6. This study is about the first _______, eco-friendly

process to transform algae oil into biodiesel fuel.

7. There are over 50 ways to ________ at home

every day. For example, last time I tried to be

_________ I designed my own clothes.

8. The more business you have, the more you are able to accomplish, for you learn to _______ your time.

HOME ASSIGNMENT: WHY ECONOMICS? (RB, p. 12, 13)

DISCUSSION (Ex. I) READING (Ex II) + VOCABULARY CHECK COMPREHENSION QUESTIONS:1. Why is economics important for people’s lives? Which

examples are mentioned? 2. How are scarcity and/or abundance of resources

connected with economics?3. Why is economics the science of choice?4. Which scientific techniques do economists use?5. Why is subjectivity an obstacle to mastering economics?

→ VOCABULARY EXERCISES (Ex III, IV)