III. Fill in the blanks below with the most appropriate terms

from the list:

capital goods; manufactured goods; free products; consumer goods; service; goods.

1. The terms ___________ and services are used to describe many things people desire. 2. _____________ are intended to satisfy individuals’ wants and needs. 3. _________ are used to produce other goods and services. 4. A haircut is an example of __________. 5. Sunshine, rainfall, fresh air are _________. 6. ____________ include plant and machinery, industrial buildings, and raw materials.

 

IV. Match each term in Column A with its definition in Column B:

Column A Column B

1. goods	a. Something in short supply; not enough to meet demand.
2. services	b. Something intended for final use by individuals to satisfy their wants and needs.
3. price	c. The goods or services one receives in an exchange.
4. capital goods	d. Tangible commodities or merchandise.
5. product	e. Work performed for someone. Intangible commodity.
6. free products	f. The money value of goods or services.
7. consumer goods	g. Something created to produce other goods or services.
8. scarce	h. Products existing in such large quantities that they need not be rationed out among those wishing to use them.

V. Define which of the following items best completes the statement:

1. The study of economics is concerned with economic products
that are

a. useful.

b. free.

c. scarce.

d. transferable.

 

2. Goods in the economic sense may be

a. a haircut.

b. a washing machine.

c. a visit to a doctor.

d. advice from a lawyer.

3. Scarcity exists because of

a. unlimited wants.

b. governmental regulation.

c. limited land, labour and capital resources.

d.unlimited wants and limited land, labour and capital resources.

VI. Complete the following sentences:

1. The study of economics is concerned with.... 2. Economic products command.... 3. The terms goods and services are used.... 4. Consumer goods are intended.... 5. The other type of economic product is.... 6. Services include.... 7. The difference between goods and services are.... 8. Many other things — sunshine, rainfall, fresh air — are known....

VII. Ask someone

what the study of economics is concerned with; characteristics goods and services have; the terms goods and services describe; consumer goods are intended for; capital goods are; a service is; services include;
the difference between goods and services are;

why sunshine, rainfall and fresh air are free products; free products can’t be a major concern in the study of economics.

VIII. Translate into English:

1. Економiчнi продукти є дефiцитними в економiчному розу­мiннi. 2. Термiни товари та послуги вживаються для позначення бага­тьох речей, що потрiбнi людям. 3. Люди використовують споживчi товари, щоб задовольняти свої бажання та потреби. 4. Промисловi то­вари використовуються для виробництва iнших товарiв та послуг.
5. Послуга — це робота, яка виконується для когось. 6. До послуг нале­жать стрижка волосся, ремонт побутових приладiв та рiзнi види розваг. 7. Сонячне свiтло, дощ та свiже повiтря вiдомi як безкоштовнi про­дукти. 8. Життя було б неможливим без них.

READING DRILLS

1. Practise the pronunciation of the following words:

a) stress the first syllable:

value, valuable, worth, dollar, cent, price, diamond, paradox, monetary, coin, reason, scarce, scarcity, plentiful, measure, weight, height, vary, concept, wealth, product, tangible, useful, accurately, stockpile;

b) stress the second syllable:

collection, economist, observe, essential, ability, utility, capacity, decide, include, existence, enjoyment, transferable.

 

Text D

In economics the term value means something having a worth that can be expressed in dollars and cents. Someone may say, for example, that he or she has a valuable coin, the value is determined by the price someone would pay for the collection.

But what makes some things worth more than others?¹ The diamond-water paradox, also known as the paradox of value, helps answer this question. Early economists observed, that some things like water were essential to life, yet had little monetary value². Other things, like diamonds, were not essential but had higher value.

Later economists decided that part of the reason was due to³ scarcity. For example, water is so plentiful in many areas that it has little or no value. On the other hand, diamonds are so scarce that they have great value. In order to have value, it has to be somewhat scarce. Scarcity, however, is not enough. If something is to have value, it must also have utility, or the capacity to be useful to someone. Utility is not something that is fixed and can be measured like weight or height. Instead, the utility of goods or services may vary from one person to the next. One person may, for example, get a great deal of⁴ enjoyment from a home computer, another may get very little. In the end, for something to have value, it must be scarce and have utility.

Another economic concept is wealth — the sum of those economic products that are tangible, scarce, useful and transferable from one person to another. Most economic goods are counted as wealth, but services are not. The reason for this is that it is difficult to measure the value of services accurately. For example, it is difficult to measure the contribution made by people’s abilities and talents to a nation’s wealth.

A country’s total worth, then is the stockpile of useful scarce⁵, tangible things⁶ in existence at a given time. National wealth includes all such items as natural resources, factories, stores, houses, theatres, books, video games etc.

 

COMMENTS

1. what makes some things worth more than others? — чому деякi речi коштують дорожче, нiж iншi?

2. monetary value — грошова вартiсть

3. the reason was due to — причина була викликана

4. a great deal of — багато

5. stockpile of useful scarce — запас корисного дефiциту

6. tangible things — реальнi речi

 

VOCABULARY EXERCISES

I. Form the new words with the following suffixes:

-able, -ible: response, consider, value, favour, change, transfer, measure;

-ful: peace, use, plenty, fruit, care;

-ity: personal, scarce, similar, capable;

-tion: populate, collect, educate, contribute, create, determine, produce.

 

II. Find equivalents:

1. monetary value 2. tangible things 3. paradox of value 4. nation’s wealth 5. country’s total worth 6. scarcity 7. to be useful to someone 8. valuable coin 9. to be essential to life 10. utility 11. economic concept 12. a great deal of 13. on the other hand 14. contribution 15. natural resources

a. дефiцит б. цiнна монета в. бути корисним комусь г. бути необхiдним для життя д. з іншого боку е. загальне багатство країни є. національне багатство ж. економiчне поняття з. внесок, вклад и. реальнi речi i. природні багатства ї. парадокс вартості й. багато к. кориснiсть л. грошова вартiсть

III. Fill in the blanks with prepositions or adverbs if necessary:

1. The value is determined... the price someone would pay... the product. 2. The diamond-water paradox is known as the paradox... value.
3.... order to have value, it has to be somewhat... scarce. 4. The utility... goods or services may vary... one person... the next. 5. One person may, for example, get a great deal... enjoyment... a home computer, another may get very.... 6. Most... economic goods are counted... wealth, but services are not. 7. It is difficult to measure the contribution made... people’s abilities and talents... a nation’s wealth. 8. A country’s total worth is the stockpile...useful, scarce, transferable and tangible things... existence... a given time.

 

IV. Match each term in Column A with its definition in Column B:

Column A Column B

1. coin	a. The stockpile of useful, scarce, tangible things in existence at a given time.
2. wealth	b. Goods that are scarce relative to the total amount of those that are desired.
3. scarcity	c. The paradox that many necessities of the life have a low market price, while many luxuries with little use have a high market price.
4. economic goods	d. The total satisfaction derived from the consumption of goods or services.
5. paradox of value	e. The total value of one’s tangible assets.
6. utility	f. The worth of smth in terms of money or other goods for which it can be exchanged.
7. country’s total worth	g. A limit to the supply of productive resources or consumer goods in relation to the producers or consumers demand for them.
8. value	h. Metallic forms of money.

 

V. Define which of the following items best completes the statement: