Scarcity forces us to forgo some alternatives.
Economics is sometimes called the study of choice.
5. Opportunity cost is what the decision-maker must forgo in order to make the choice that is finally made.
Opportunity cost is the fundamental economic problem.
Reproduce the context in which the following word-combinations are used.
To satisfy needs and wants
To produce goods and services
Economic activity
Scarce resources
To forgo alternatives
To evaluate the cost and benefit
Vocabulary Focus
1. Complete the gaps using the vocabulary.
choice; free goods; limited; opportunity cost; resources; scarce; scarcity; services; unlimited
(1) are important because they are used to make goods, like television, cars and houses and to provide (2), like banking, insurance and transport. All of these resources are (3). Any resources that are not scarce are called (4). Wants are (5) but the resources used to produce the goods and services to satisfy these wants are (6). So, there exists (7). (8) is necessary because scarce resources can be used in lots of ways to make different goods and services. The real cost of choosing one thing and not another is known as the (9).
2. Choose the right word to complete the sentences.
1. Hunger... in many parts of the world.
a) evaluates b) exists c) satisfies
2. We have to the results of our experiment.
a) face b) forgo c) evaluate
3. We want to build a house. Last year we bought some in the village.
a) capital b) labour c) land
4. The company offers its employees a pension plan, free health insurance, and other .
a) economic activity b) benefits c) desires
5. The wants we seek to are limited.
a) satisfy b) forgo c) face
3. Give the English equivalents to the following.
,
Talking Points
1. Explain the fact that people exchange goods and services because they expect to be better off ( ) after the exchange.
2. Explain that whenever a choice is made, something is given up.
3. Discuss the following question with your groupmates. Give your arguments for or against.
Do you agree that the problem of scarcity is faced by rich and poor societies?
Summary Points
1. What is the main idea of the text about scarcity and choice? Is it only to explain what scarcity and choice are?
2. Divide the text into parts and make up a plan. What are these parts about?
3. Find in the text the most important details that may be added to support the main points. Use the following vocabulary.
| The author thinks (believes) that | (), |
| The author notes that | , |
| According to the author | |
| In conclusion |
UNIT 5
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DEMAND AND SUPPLY
Lead-in
1. Discussing in groups or pairs, try to identify the factors that influence:
a. consumers decisions to demand goods or services
b. producers decisions to supply goods or services
2. Do you know how the law of demand and supply works?
Key Vocabulary
Study the following vocabulary.
| 1. buyer n | |
| 2. seller n | |
| 3. demand n | |
| 4. supply n | |
| 5. have an influence on smth | - |
| 6. competitive adj | , |
| 7. interact v | |
| 8. support v | |
| 9. pay v | |
| 10. commodity n | , |
| 11. law n | |
| 12. quantity n | |
| 13. consumer n | |
| 14. substitute n | |
| 15. complementary adj | ( ) |
| 16. increase n | , |
| 17. profitable adj | |
| 18. tend v | |
| 19. encourage v | , |
| 20. influence smth v | - |
| 21. equal adj | , |
| 22. attain v | |
| 23. state of equilibrium |
Pre-reading Activities
1. Mind the pronunciation of the following words. Learn this vocabulary.
increase (n) - ['inkri:s] ,
increase (v) - [in'kri:s] ,
decrease (n) - ['di:kri:s] ,
decrease (v) - [di'kri:s] ,
equal (adj) - ['i:kwəl] ,
equal (v) - ['i:kwəl] ,
