A mixed economy is an economics system in which some goods and services are produced by the government and some by the private enterprise.10.. Monetary policy controls a nation’s money s
Trang 1A.Complete these sentences:
1 Microeconomics
Microeconomic studies the actions of individuals and
industriers, like the dynamics between buyers and sellers,
lenders and borrowers
Microeconomic studies the operations of the components of a
national economy, such as household, consumers, individual firms
2 Macroeconomics
Macroeconomics studies the economic activity of an entire
coutry or international marketplace
Macroeconomics studies the overall aspects and workings of a
national economy such as income, output, the interrelationaship among diverse economic sectors
3 Two main types of economics are microeconomics and
macroeconomics
Trang 24 People who study economics are called economist.
5 Resources includes the time and talent people are available, the land, buildings, equipment, and other tools on hand, and the knowledge of how to combine them to create usefull product andservices
6 Three economics systems are free market economy, planned economy and mixed economy
7 A free market economy is an economics system in which the market is supposed to be regulated by the law of supply and demand
8 A planned economy is an economics system whereby the
structure of the market is deliberately planned by the state, in which production and consumption quotas are fixed beforehand, and where there is no real competition industrial or commercial organizations
Trang 39 A mixed economy is an economics system in which some goods and services are produced by the government and some by the private enterprise.
10 Much of microeconomics is about limits:
+ The limited incomes that consumers can spend on goods and services
+ The limited budgets and technical know how that firms can use to produce things
+ The limited number of hours in a week that workers can allocate to labor and leisure
11 Three themes of microeconomics are the idea of making
optimal trade-offs, the role of prices, the central role of markets
12 Trade-offs mean an exchange that occurs as a compromise
Trang 413 Consumers can trade off
+ the purchase of more of somes goods with the puchase of less of other
14 The consumer theory describes
15 The goal of macroeconomics is to look at overall economic trends such as employment levels, economic growth, balance of payments, inflation, so on ……
16 Two main types of macroeconomics policies are fiscal policy and monetary policy
17 Monetary policy controls a nation’s money supply is
supervised by each country’s central bank
18 Fiscal policy controls a government’s revenue and spending is
in the hand of the ministry of finance
19 The basic objectives of these two main macroeconomics
policies are to promote economic growth and to keep inflation under control
Trang 520 Microeconomics and macroeconomics are actually
interdependent and complement one another since there are
many overlapping issues between 2 fields
21 Demand is the quantity of goods or services buyers are
willing and able to buy at various prices in a period of time
22 Supply is the quantity of goods or services sellers are willing
and able to sell at different prices in a period of time
23 Quantity demanded is the quantity of goods or services
buyers are willing and able to buy at a certain price in a period
of time
24 Quantity supplied is the quantity of goods or services sellers
are willing and able to sell at a certain price in a period of time
25 Shift factors of demand are society’s income, prices of other
goods, expectations and tastes
26 Shift factors of supply are prices of output, technology,
taxes, suppliers’ expectations
27 Demand curve shows the price influence on buyers.
Trang 628 Equilibrium is situation in which there is no tendency for
change
29 A market will be in equilibrium when there is no reason for
the market price of the product to rise or to fall
30 Payroll taxes generate trust funds which are only used for
very specific program
31 Other types of taxes generate federal funds which are used
for anything when the president and congress conduct annual programs
32 Government can borrow money by issuing bonds
33 Three major sources of tax revenue: individual income
taxes, payroll taxes, corporate income taxes
34 The federal debt is the sum of the debt held by the public
plus the debt held by federal accounts
35 Government spending and taxation directly affect the
overall performance of the economy
36 If the Government increases spending the economy is grow
Trang 737 If the Government increases taxes the economy tends to
shrink
38 When the Government spends more than it receives, it
runs deficit
39 Deficit spending is the spending funds obtained by borrowing
or printing instead of taxation
40 Deficit spending can be helpful for the economy when
unemployment is high
41 Deficit spending can be harmful for the economy when
unemployment is low
42 Fiscal policy can be expansionary when taxation is reduced
or public spending is increased
43 Fiscal policy can be contractionary when taxation is
increased or public spending is decreased
44 Some factors should be considered in making decisions on fiscal policy such as:
⮚ The level of economic growth or unemployment likely in the future
Trang 8⮚ Whether or not to run a budget deficit by spending more money than the government raises.
⮚ Influenced by political considerations such as beliefs about the size of the role that governments should play in the economy or the likely public reaction to a particular course
of action
⮚ Other outside factors: the fiscal policy of other countries, the requirements of the IMF
45 The primary function of taxation is to raise revenue to
finance government expenditure
46 Income taxes are the taxes imposed wages and salaries
47 Sale taxes are
48 Customs duties are taxes on imports and paid by importers
49 VAT is a tax collected at each stage of production, excluding
the already-taxed costs from previous stages
50 Capital gain tax is a tax levied on profits made by selling
assets
Trang 951 Capital transfer tax is a tax levied on gifts and inheritances
over the certain value
52 The financial definition of insurance is a financial
arrangement that redistributes the costs of unexpected loss
53 Money is a commodity accepted by general consent as a
medium of economic exchange
54 The functions of money are promoting trade, serves as a
medium of exchange, a measure of or a unit of account, a store
of value and a standard of deferred payments
55 A medium of exchange is anything that is widely accepted in
payment for goods and services and in settlement of debts
56 The unit of account is the unit in which prices are quoted and
account are kept
57 Two types of money are commodity money and token
money
58 Commodity money is a useful good that serves as a medium
exchange
Trang 1059 Token money is a means of payment whose value or
purchasing power as money greatly exceeds its cost of
production or value in uses other than as money
60 Reserve requirement refers to the percentage the central
bank set as the minimum amount of reserves as bank must have
61 Discount rate refers to the rate of interest charged by the
central bank on loans to its member bank
62 Open market operations refer to the Fed’s buying and
selling government securities ( where the government buy and sell bonds)
63 The Monetary policy should be expansionary when
economic growth rate is still low or unemployment rate is still high
64 The Monetary policy should be restrictive when inflation
rate is high or the economy is overheating
65 A foreign exchange market is the over counter market in
which national currencies are exchanged
Trang 1166 An exchange rate is the rate in which the currency unit of
one country may be exchanged for that of another
67 A bit rate is the exchange rate at which a bank buys one
foreign currency with its local currency
68 An offer rate is the exchange rate at which a bank sells one
foreign currency for its local currency
69 Customers in the Forex can be multinational corporations,
import-export companies, individuals…
70 Sport transactions are undertaken for an actual exchange of
currencies two business days later
71 A Primary market is a financial market in which new issues
of a security, such as a bond or a stock, are sold to initial buyers
by the corporation or government agency borrowing funds
72 A secondary market is a financial market in which securities
that have been previously issued can be resold
73 Money market is a financial market in which only short-term
debt instrument are traded
Trang 1274 Capital market is the market in which longer-term debt and
equity instruments are traded
Complete the following sentences using given prompts:
1 Well-being / mean / satisfaction / gain / use / goods and services /, time / share / families and friends / and so on.
Well-being means the satisfaction gained from using goods andservices, from their time shared with their families and friends and
Trang 133 Macroeconomics / take / much broader view / analyze /
economic activity / entire country / international market place.
Macroeconomics takes a much broader view by analyzing theeconomic activity of an entire country or international market
4 Consumer theory / describes / how / consumer based on /
maximize /their well-being / make / trade-offs.
Consumer theory describes how consumers based on
maximize their well-being by making trade-offs
5 Monetary policy / which / control / nation’s money supply / be / supervise / each country’s Central Bank.
Monetary policy which controls a nation’s money supply is supervised by each country’s Central Bank
6 Fiscal policy / which / control / government’s revenue and spending / be / hand / Ministry of Finance.
Fiscal policy which controls a government’s revenue and spending is in the hand of the Ministry of Finance
Trang 147 Basic objectives / two / main / macroeconomic policy / be / promote / economic growth / and / keep / inflation / control.
The basic objectives of these two main macroeconomic policies are to promote economic growth and to keep inflation under control
8 Payroll tax / generate / Trust Fund / which / be / only / use / medical / and social security / programs.
Payroll tax generates Trust Fund which is only used for
medical and social security programs
9 Primary function / taxation / be / raise / revenue / finance / government expenditure / but / taxes / can / have / other
purposes.
Primary function of taxation is to raise revenue to finance government expenditure but taxes can also have other purposes
Trang 1510 Federal funds / be / generate / collection / income tax / customs duty / excise tax / and / so on.
Federal funds are generated from the collection of income taxes, customs duty, excise taxes and so on
11 Deficit spending / be / spending funds / obtain /
borrowing / printing / instead / taxation / and / can / be /
helpful / and harmful / economy.
Deficit spending is spending funds obtained by borrowing and printing instead of taxation and can be helpful for the
economy
12 Fiscal policy / be / expansionary / when / Government / increase / government spending / reduce / tax rate / combine both.
Fiscal policy can be expansionary when the Government
increases government’s spending or reduces tax rate or combines both
Trang 1613 Fiscal policy / be / contractionary / when / Government / reduce / government spending / increase / tax rate / combine both.
Fiscal policy can be contractionary when the Government reduces government’s spending or increases tax rate or combines both
14 Tax evasion / mean / make / false / declaration / tax
authorities / and tax avoidance / mean / reduce / tax bill / legal minimum.
Tax evasion means making false declaration to the tax
authorities and tax avoidance means reducing the amount of tax bill to a legal minimum
15 Direct tax / be / tax / in which / tax payer / have to /
contribute / tax bill / directly / tax office.
Trang 17Direct tax is a tax in which a tax payer have to contribute a taxbill directly to tax office.
16 Through / operation / insurance system /, loss / can / be / predict / in advance /, it / allow / costs of losses / be / finance / and / redistribute / in advance.
Through the operation of insurance system, losses can be
predict in advance, it allows the costs of losses to be financed and redistributed in advance
17 Insurance / be / financial arrangement / that / redistribute / cost / unexpected losses.
Insurance is a financial arrangement that redistributes the cost
of unexpected losses
18 An insurance system / accomplish / redistribution / cost / loss / collect / premium payment / every participant / system.
Trang 18An insurance system acomplishs the redistribution of the costs
of losses by collecting a premium payment from every participant
in the system
19 Money / be / commodity / accept / general consent / as / medium / economic exchange.
Money is a commodity accepted by general consent as a
medium of economic exchange
20 A medium of exchange / be / anything / that / be / widely / accepted / in / payment / goods and services / and / in /
settlement / debts.
A medium of exchange is anything that is widely accepted in
payment for goods and services and in settlement of debts
21 Unit of account / be / unit / in which / price / be / quote / and / account / be / keep.
The unit of account is the unit in which prices are quoted and
accounts are kept
Trang 1922 Token money / be / means of payment / whose / value / purchasing power / as / money / greatly / exceed / its cost / production / value / in uses / other / than / as / money.
Token money is a means of payment whose value or purchasing power as money as greatly exceeds its cost of production or value
Trang 20If the Fed increases the reserve requirement it contracts the money supply, banks have keep more reserves so they have less money to lend out.
25 Discount rate / refer / interest rate / that / Fed / charge / loan / other banks.
discount rates refer to the interest rate that the Fed charges for
those loans to other banks
26 Market maker / establish / market / and / any time /
quote / exchange rate / base on / international demand / and / supply / currency / supervise / market’s operation / in order to / ensure / market’s stability.
Market makers establish the market and at any time quote the
exchange rate based on the international demand and supply of currencies
Trang 2127 Broker / be / specialist company / who / provide /
consultancy /, they / contact / bank / throughout / world / , so that / any time / they / could / know / best exchange rate /
provide / consultancy / their customer.
Brokers are specialist companies who provide consultancy, they contact banks throughout the world so that at any time they could know the best exchange rate to provide the consultancy to their customer