Ex.8. Combine two parts logically to make complete sentences.

Ex.7. Fill in the gaps with appropriate prepositions or adverbs.

Ex.6. Choose an appropriate word or phrase to complete the following sentences.

Economic profit, factors of production, fee, goods and services, Nations, needs and wants, option or options, products and services, resources, unlimited wants.

1. Economics is the study of what constitutes rational human behaviour in the endeavour to fulfil _________.

2. Modern economics began in 1776, with the publication of Adam Smith's Wealth of _________.

3. Modern definition of economics interprets it as the social science, which analyzes the production, distribution, and consumption of _________.

4. A service is an action or activity done for others for a _________.

5. _________are basic elements used to produce goods and services.

6. The entrepreneur is an individual who takes an idea and attempts to make an _________from it by combining all other factors of production.

7. Scarcity exists because people’s wants and needs are greater than the _________available to satisfy them.

8. The cost of any choice is the _________that a person gives up.

9. Economics is the study of how people choose to allocate scarce resources to satisfy their _________.

10. The demand from consumers and available resources will normally determine what _________to produce.

1. Browsing different information resources, you will find various answers ______ that question.

2. Economics is the study ______ what constitutes rational human behaviour.

3. Modern economics began ______ 1776.

4. Central ______ the Adam Smith’s Wealth of Nations was the concept ______ the “invisible hand”.

5. If there are surplus goods, there will be an economic incentive to produce ______ or different types of goods.

6. Modern definition ______ economics interprets it as a social science.

7. A service is an action or activity done ______ others ______ a fee.

8. The need ______ making choices arises ______ the problem of scarcity.

9. Scarcity means that people want ______ than is available.

10. The cost ______ choice is the option or options that a person gives up.

11. Most ______ economics is based ______ the simple idea that people make choices.

12. Economics has a very important task ______ minimizing costs ______ producing different goods and services.

13. Very significant decisions must be made _____three basic economic questions.

14. The demand _____ consumers and available resources will normally determine

what products and services to produce.

15. Goods are produced ______ those consumers who demand the goods, and have the ability to pay ______ the goods demanded.

Ex.9. Look through the text again and replace the words/phrases in italics with similar ones.

1. The term “economics” comes from the Ancient Greek “oikonomia”, the word composed of “oikos” ("house") and “nomos” ( “custom” or “law”), thus, “rules of the house(hold)”.

2. Wants and needs refer to people’s wants to consume certain goods and services.

3. In economic terms, a good is a physical object that can be bought.

4. Economics often uses such categories as factors of production, which are basic elements used to manufacture goods and services.

5. Scarcity exists because people’s wants and needs are greater than the resources available to meet them.

6. The main problem in economics is the question of allocating limited resources between competing uses.

7. That’s why very significant decisions must be made about three basic economic questions: What to produce? For whom to produce? and How to produce?

8. For the purpose of answering this question we need to determine the needs of individual consumers as well as the economy in general.

9. Goods are thus produced for those consumers who demand the goods, and have the ability to pay for the goods demanded.

10. No aspect of life is untouched by economics – despite the fact that it can be hard to convey its central importance in human lives.