CANKAYA UNIVERSITY OFFICE OF BASIC AND ELECTIVE COURSES -ENGLISH UNITSOME ECONOMIC LAWS FOR ENG 205 COURSE UNIT 3 - WEEK 3 Some Economic Laws Economy consists of the economic system of a country or other areas; the labor, capital and land resources; and the manufacturing, trade, distribution, and consumption of goods and services of that area. Some Economic Laws Discussion 1- How can laws organise economic activities? 2-How can laws affect wages? What are your personal needs? • A car? • A house? • A bottle of whisky? • Money? Qs: What is this special characteristic of satisfying a want? -UTILITY Utility is not the same as usefulness ... Economists describe utility as “the relationship between a consumer and a commodity”. Vocabulary • expenditure: (n)the action of spending or using time, money, energy etc. Synonyms: expense, cost The government's annual expenditure on arms has been reduced. • purchase: (v) to buy something Antonym: sell Tickets must be purchased two weeks in advance. She purchased her first house with all the money she has saved. Vocabulary substitute: (n)a person or thing that you use instead of the one that you usually have, because the usual one is not available Synonyms: replacement, representative Thomas was substituted for Williams in the second half of the meeting. priority: (n) the thing that you think is most important and that needs attention before anything else Synonym: preference The children are our first priority. After several burglaries in the area, security is now a high priority (=very important and needing attention soon). Vocabulary satisfy: (v) if you satisfy someone's needs, demands etc, you provide what they need or want Antoynm: disappoint, upset The program is designed to satisfy the needs of adult learners. remain: (v) to continue to be in the same state or condition Antonyms: depart, go, leave, move Synonym: stay, wait Please remain seated until all the lights are on Vocabulary quantity: (n) an amount of something that can be counted or measured Synonyms: quota, size, sum, total Huge quantities of oil were spilling into the sea • commodity: (n)a product that is bought and sold Synonyms: goods, products Commodity prices fell sharply Vocabulary • convenience: (n) the quality of being suitable or useful for a particular purpose, especially by making something easier or saving you time. Synonyms:benefit, comfort Ready meals sell well because of their convenience. • essential:(adj.) extremely important and necessary Synonyms: vital, crucial, main, fundamental Water is essential for/to living things. It is essential (that) our prices remain competitive. Comprehension Questions p.12 What determines utility? A: Our sense of priorities and quantitiy available to the consumer determine utility. It varies among different people and nations. What is the relation between demand and prices? A: If the price of sth rises, we will buy less (e.g. cigarettes, food, etc.) Comprehension Questions p.12 Explain the law of diminishing marginal utility? A: The consumer’s desire for a commodity tends to diminish as he buys more units of that commodity. What are some essential and non-essential commodities? A: Food and shelter are essential commodities whereas holidays and trips to the theatre and non-essential ones. In which cases can demand be inelastic? A: For non-essentials, demand is elastic. TRUE-FALSE Utility is different from uselfulness in the study of economics. TRUE Utility does not change from nations to nations. FALSE As the stock increases, the utility of a commodity decreases. TRUE Utility is related also to the laws of supply and demand. TRUE Supply is said to be inelastic. FALSE REFERENCE they in line 20 refers to they in line 25 refers to its in line 26 refers to it in line 33 refers to this in line 42 refers to them in line 51 refers to cigarettes prices commodity’s Supply of a commodity Particular commodity Very high prices for the essentials of life VOCABULARY ITEMS p.12 1- supplied 2- consumer 3- demand 4- essential 5- purchase 6- diminishing 7- commodities 8- convenient 9- remains 10- expenditure Pre-Listening Vocabulary p.13 interfere: (v.) to involve yourself in a situation when your involvement is not wanted or is not helpful Synonym: intervene Interfering in other people's relationships is always a mistake. • laissez-faire: (n.phr.): the principle that the government should allow the economy or private businesses to develop without any state control or influence Synonym: nonintervention The problems began long before he became headteacher, but they worsened with his laissez-faire approach/attitude. Pre-Listening Vocabulary p.13 monopoly(n.):if a company or government has a monopoly of a business or political activity, it has complete control of it so that other organizations cannot compete with it For years Bell Telephone had a monopoly on telephone services in the US. The government is determined to protect its tobacco monopoly. • welfare(n.):health and happiness Synonym: well-being Our only concern is the children's welfare. We are very concerned about the welfare of U.S. citizens abroad. Pre-Listening Vocabulary p.13 free enterprise(n.phr.):the principle and practice of allowing private business to operate without much government control • property(n.): a building, a piece of land, or things that someone owns Synonyms: assets, belongings The hotel is not responsible for any loss or damage to guests' personal property.