3- Economics! What Is It? [Part I]
Economics is the science that deals with the production, allocation, and use of goods and services. It is important to study how resources can best be distributed to meet the needs of the greatest number of people.
As we are more connected globally to one another, the study of economics becomes extremely important. While there are many subdivisions in the study of economics, two major ones are macroeconomics and microeconomics.
-Macroeconomics is the study of the entire system of economics.
-Microeconomics is the study of how the systems affect one business or parts of the economic system.
History of Economics
The first writings on the subject of economics occurred in early Greek times as Plato, in The Republic, and Aristotle wrote on the topic. Later such Romans as Cicero and Virgil also wrote about economics
In medieval times the system of Feudalism dominated.
With feudalism, there was a strict class system consisting of nobles, clergy, and peasants.
In the system the king owned almost all the land and under him were a series of nobles that had the holdings of various sizes. On these landholdings were a series of manors. These were akin to large farming tracts in which the peasants or serfs worked the land in exchange for protection by the nobles.
Later the system of Mercantilism predominated
It was an economic system of the major trading nations during the 16th, 17th and 18th centuries, based on the idea that national wealth and power were best served by increasing exports and collecting precious metals in return. Manufacturing and commerce became more important in this system.
In the mid 18th century, the Industrial Revolution ushered in an era in which machines rather than tools were used in the factory system. More workers were employed in factories in urban areas rather than on farms. The Industrial Revolution was fueled by great gains in technology and invention. This also made farms more efficient, although fewer people were working the farms. During this time the idea of “laissez faire” became popular. This means that economies work best without lot of rules and regulations from the government. This philosophy of economics is a strong factor in Capitalism, which favors private ownership.
Quiz 1 (Adverbially Speaking)
• Q1 They had to drive ....... up the hill because the car was very old.
(a) easily (b) intently (c) slowly (d) fairly
• Q2 Please listen ....... because this is important.
(a) quietly (b) quickly (c) nicely (d) carefully
• Q3 Sorry we're late but we got here as ....... as we could.
(a) recently (b) quickly (c) well (d) nearly
• Q4 He mumbled throughout his speech so I could ....... understand a single word.
(a) really (b) fully (c) hardly (d) hard
• Q5 I trust his judgement — he ....... makes a mistake.
(a) never (b) always (c) quite (d) simply
• You've ....... ruined my new carpet with your filthy shoes.
(a) rarely (b) sometimes (c) usually (d) completely
• Q7 You haven't ....... written that letter, have you?
(a) clearly (b) truly (c) actually (d) blankly
• Q8 I have ....... told her not to do that and yet she always does.
(a) admittedly (b) repeatedly (c) wholeheartedly (d) frankly
• Q9 It was a very long day but we ....... arrived in time for tea.
(a) eventfully (b) unusually (c) dully (d) eventually
• Q10 He didn't want me to enter and ....... disputed my reason for being there.
(a) hotly (b) terribly (c) horribly (d) awfully
Quiz 2 (Poverty: living standards expressions)
• Q1 Poverty is a relative measure that depends on prices, the standard of living, and the ....... that others earn.
(a) amounts (b) incomes (c) monies (d) pays
• Q2 Poverty is a major problem in the world — and one that is extremely difficult to ........
(a) decide (b) resolve (c) determine (d) restore
• Q3 Families and individuals are defined as living in ....... if their incomes fall below certain levels.
(a) poor (b) poverty (c) scarcity (d) dearth
• Q4 Poverty in the United States is more ....... than most people realize.
(a) wide (b) ample (c) broad (d) extensive
• Q5 One reason for the continued high poverty number is the growing gap in the ....... of income.
(a) distribution (b) exchange (c) transmission (d) movement
• Q6 Weekly ....... tend to be lower for people employed in service industries.
(a) pay cuts (b) pay checks (c) pay offs (d) pay slips
• Q7 During the 1990's, salaries for highly skilled employees ......., while wages for those who are less skilled remained about the same.
(a) soared (b) flew (c) took off (d) took to the air
• Q8 The decline of unions means that low skilled workers have to look ....... for less pay.
(a) somewhere (b) everywhere (c) elsewhere (d) nowhere
• Q9 The shift from two-parent families to single-parent families and other non-family arrangements tends to ....... average family income.
(a) slighter (b) smaller (c) lesser (d) lower
• Q10 According to recent ......., nearly 45 million Americans live in poverty.
(a) quantities (b) statistics (c) numerals (d) amounts
Answers:A1 (c) slowly
A2 (d) carefully
A3 (b) quickly
A4 (c) hardly
A5 (a) never
A6 (d) completely
A7 (c) actually
A8 (b) repeatedly
A9 (d) eventually
A10 (a) hotly
A1 (b) incomes
A2 (b) resolve
A3 (b) poverty
A4 (d) extensive
A5 (a) distribution
A6 (b) pay checks
A7 (a) soared
A8 (c) elsewhere
A9 (d) lower
A10 (b) statistics