TIẾNG ANH CHUYÊN NGÀNH 1 - unit 3 Microeconomics

Precisely chính xácAddition ngoài ra, thêm vào Relevance sự tương ứng Optimal tối ưu Limited hạn chế, khan hiếm... Firstly, it talks about the limits.For example, the limited incomes, th

Agent đại lý

đình

Precisely chính xác

Addition ngoài ra, thêm vào Relevance sự tương ứng

Optimal tối ưu

Limited hạn chế, khan hiếm

Flexibility sự linh hoạt Determine quyết định, xác định

compete cạnh tranh Competition sự cạnh tranh Competitor đối thủ cạnh tranh

Typically đặc trưng, điển hình preference sự ưu tiên current hiện tại

Potential tiềm năng

The important themes in microeconomic

II Summary

• Unit 3 is about microeconomics There are three main ideas

Firstly, it talks about the limits.

For example, the limited incomes, the limited budgets, the limited resources and the limited number of working hours,…

Secondly, it talks about the decisions on allocation in a

planned economy and modern market economies

In a planned economy, these allocation decisions are made mostly by the government

In modern market economies: consumers, workers and firms make the allocation decisions

Finally, it talks about the important themes of microeconomics.

The first theme is the idea of making optimal trade-offs, this theme is studied on 3 aspects: consumers, workers and firms

The second theme is the prices It describes the roles of prices and how prices are determined

The third theme is the central role of markets

III Answer the questions

1 What are the limits?

The limits include: the limited incomes, the limited budget, the limited financial resources and the

limited number of hours in a week that workers

can allocate to labor and leisure

2 In a planned economy, who make decisions on the allocation of scarce resources?

In a planned economy, the government make

decisions on the allocation of scarce resources.

3 Why are many microeconomic tools and concepts

of limited relevance in Cuba and North Korea?

• Because these allocation decisions are made

mostly by the government The government

regulates that:

• Firms: What and how much to produce?

How to produce it?

• Workers : They have flexibility in choice jobs,

hours worked or even where they live?

• Consumers: They have a very limited set of

goods to choose from.

4 What does the consumer theory indicate?

Consumer theory describes how consumers, based on their preference, maximize their well- being by trading off the purchase of more of some goods with the purchase of less of others.

5 What does the firm theory indicate?

The theory of the firm describes how these

trade-offs can be best made.

7 In a modern market economy, how are prices determined?

In the modern market economy, prices are

determined by supply and demand in the

market.

7 What does the term “trade-offs” mean?

“Trade-offs” means the same opportunity cost It

is the different opportunity, which is overlooked when you make an economical choice.

8 What are the ideas of making optimal trade-offs

by consumers?

Consumers:

• Spend their incomes on goods and services or

save their incomes for future.

• Maximize their well-being by trading off the

purchase of more of some goods with the

purchase of less of others.

• How much of their incomes to save and how

much of their incomes to spend.

9 What are the ideas of making optimal

trade-offs by workers?

Workers:

People decided when and if to enter the

workforce trade-offs of working now or

obtaining more education.

Workers face trade-offs in their choices of

employment

Trade-offs of labor and leisure How many

hours they to work and how many hours they to leisure.

10 What are the ideas of making optimal

trade-offs by firms?

Firms:

What and how much to produce?

How to produce it effectively?

For example: Ford must decide how many of each type of vehicle to produce or they want to extend

their production, they must decided whether to hire more workers, build new factories or do both.

Thanks for

listening ^^