Comprehension. Answer the questions.

Answer the questions.

1. What basic economic terms can you name?

2. What is a demand? Which factors influence the demand?

3. What is a supply?

4. What motivates sellers, companies and manufacturers to create supply?

5. What is a budget?

6. Why is it important to understand the inflation process?

7. How is inflation measured?

8. What do interest rates typically refer to?

9. Higher interest rates indicate strong economic growth, don’t they?

Vocabulary

Match the words from column A with the words from column B to make a phrase.

Fill in the correct words from the list below.

Market, economic, product, determines, production, factors, economics, supply

The terms "supply" and "demand" are two of the most basic and most often used terms in … . Supply and demand are … forces which determine the direction in which the economy moves. … refers to how much of a given product or service is available. Demand refers to the level of want or need for a … or service. Both supply and demand work in reciprocity with one another and another important … term, "price." Price … supply which, in turn determines demand. Supply also is determined by … . The amount of a product produced can depend on … such as cost, competition and technology.

Translate the words in brackets into English. Use the following words.

Reduce, rise, increase, fall, decrease, reduction

1. The population of the world (увеличивается).

2. An inflation is characterized by the (повышение) in prices within a certain period of time.

3. They (снизили) prices by 10%.

4. The demand for ice cream usually (падает) in winter.

5. The prices for electronic goods (упали).

6. A small (сокращение) in production did not affect greatly the supply of the product.

7. Prices continue (расти).

8. The price for wheat (снизилась) by 5 %.

Grammar in Use

Past Simple – Present Perfect

Look and learn.