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9
COMPREHENSION CHECK
I. Are the following statements true or false?
1. Economics is concerned with everyday issues, such as un-
employment, prices, wages etc.
2. Inflation has nothing to do with economics as a science, but
it has a lot to do with my personal income.
3. The allocation of scarce resources is the only subject matter
of economics.
4. Economists can explain economic events, but they are unable
to predict them.
5. Karl Marx called for a "dictatorship of the proletariat", where
the workers would replace the capitalist ruling class.
6. If some economic decisions are taken by the government, we
have a centralized economy.
II. Fill in the correct words from text 2.
Economics is __________with the production, distribution and
consumption of wealth. It also deals with different_____questions,
especially _______ with labour, finance, taxation etc. All of us get
___________ in economic problems. Economists cannot __________
separately the behaviour of every individual in a large population in-
stead, they make _____ and ____economic models. On the basis of
these models they ________ economic events. Economists
_________economic systems into ____ Western _________ are _____
mostly ________ economic systems in which economic events are the
outcome of _________ decisions. If government planners _______
some of the most important ________ decisions, the economy is
__________.
TOPIC 2. BUSINESS
I. Discuss the following questions:
l. When you see the word BUSINESS, what do you think about?
Quickly write down words or ideas as they come into your mind.
SELLER, CUSTOMER, MONEY________________________
Now discuss your notes with your classmates.
10
2. Write your own definition of business in the space provided
below. Begin your definition in this way:
BUSINESS IS_______________________________________
Compare your definition with the one written by the person next
to you. Add to your definition if you find any new information.
II. Below is the list of terms that you will find in the text. As
you read "What is business?", see if you understand each term. Use
this as a working list and add other terms that you do not know.
NOUNS VERBS ADJECTIVES OTHER
exchange examine technical for instance
production classify various on the other hand
distribution perform
sale remain
goods create
profit
conversion
surplus
expenses
III. Read the text:
What is Business?
Business is a word that is commonly used in many different lan-
guages. But exactly what does it mean? The concepts and activities of
business have increased in modern times. Traditionally, business sim-
ply meant exchange or trade for things people wanted or needed. To-
day it has a more technical definition. One definition of business is the
production, distribution, and sale of goods and services for a profit. To
examine this definition, we will look at its various parts. First, produc-
tion's the creation of services or the changing of materials into prod-
ucts. One example is the conversion of iron ore into metal car parts.
Next, these products need to be moved from the factory to the
marketplace. This is known as distribution. A car might be moved
from a factory in Detroit to a car dealership in Miami.
COMPREHENSION CHECK 2. Write your own definition of business in the space provided below. Begin your definition in this way: I. Are the following statements true or false? BUSINESS IS_______________________________________ 1. Economics is concerned with everyday issues, such as un- Compare your definition with the one written by the person next employment, prices, wages etc. to you. Add to your definition if you find any new information. 2. Inflation has nothing to do with economics as a science, but it has a lot to do with my personal income. II. Below is the list of terms that you will find in the text. As 3. The allocation of scarce resources is the only subject matter you read "What is business?", see if you understand each term. Use of economics. this as a working list and add other terms that you do not know. 4. Economists can explain economic events, but they are unable to predict them. NOUNS VERBS ADJECTIVES OTHER 5. Karl Marx called for a "dictatorship of the proletariat", where exchange examine technical for instance the workers would replace the capitalist ruling class. production classify various on the other hand 6. If some economic decisions are taken by the government, we distribution perform have a centralized economy. sale remain goods create II. Fill in the correct words from text 2. profit Economics is __________with the production, distribution and conversion consumption of wealth. It also deals with different_____questions, surplus especially _______ with labour, finance, taxation etc. All of us get expenses ___________ in economic problems. Economists cannot __________ separately the behaviour of every individual in a large population in- III. Read the text: stead, they make _____ and ____economic models. On the basis of these models they ________ economic events. Economists What is Business? _________economic systems into ____ Western _________ are _____ Business is a word that is commonly used in many different lan- mostly ________ economic systems in which economic events are the guages. But exactly what does it mean? The concepts and activities of outcome of _________ decisions. If government planners _______ business have increased in modern times. Traditionally, business sim- some of the most important ________ decisions, the economy is ply meant exchange or trade for things people wanted or needed. To- __________. day it has a more technical definition. One definition of business is the production, distribution, and sale of goods and services for a profit. To TOPIC 2. BUSINESS examine this definition, we will look at its various parts. First, produc- tion's the creation of services or the changing of materials into prod- I. Discuss the following questions: ucts. One example is the conversion of iron ore into metal car parts. l. When you see the word BUSINESS, what do you think about? Next, these products need to be moved from the factory to the Quickly write down words or ideas as they come into your mind. marketplace. This is known as distribution. A car might be moved SELLER, CUSTOMER, MONEY________________________ from a factory in Detroit to a car dealership in Miami. Now discuss your notes with your classmates. 9 10
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