Normative Economics

ECONOMY

When an artist looks at the world, he sees colour.

When a musician looks at the world, he hears music .

When an economist looks at the world,

he hears a symphony of costs and benefits.

D. Colander

Your vocabulary

Economy

- a system according to which the money, industry, and trade of a country or

region are organized.

- a country’s economy is the wealth that it gets from business and industry.

- careful spending or the use of things in order to save money.

- large-size packages of goods which are cheaper than the normal sized packages on sale.

Economic

- concerned with economics and with the organization of the money, industry, and trade of a country, region, or social group.

- relating to services, businesses, etc. that produce a profit.

Economical

- something that is economical does not require a lot of money to operate.

- using the minimum amount of time, effort, language, etc. that is necessary.

Economics

- the study of the production of wealth and the consumption of goods and services in a society, and the organization of its money, industry, and trade.

Economist

- an expert or student of economics.

Economize

- save money by spending it very carefully and not buying expensive things.

Economic Institution

- a physical or mental structure that significantly influences economic decisions

Economic policy

– an action (or inaction) taken, usually by government, to influence economic events.

Economic model

– simplified representation of reality.

Positive Economics

– the study of what is, and how the economy works.

Normative Economics

–the study of how the economy should be, from society’s standpoint.

Ex. 1. To show that you understand the words given above, choose the best word to complete the following sentences. Add noun, verb or adverb endings if necessary.

1. Home ... is a subject studied at school and college in which students are taught how to run a house well and efficiently.

2. New England’s ... is still largely based on manufacturing.

3. All Western ... are competing against each other.

4.These businesses contribute hundreds of millions of pounds to the ... of the country.

5.I switched off the lights as an ... measure.

6.If you make ..., you take action in order to save money, by not spending it on unnecessary things.

7.You’ll have to travel ... class.

8.Buy our new ... packs of 100.

9.If you are really going to buy a car, we’ll have to ... on other things.

10. In his works he explains the ideas of the great English ... J.M. Keynes.

11.She thought of herself as an ... wife.

12.This system was extremely ... because it ran on half-price electricity.

13.What has gone wrong with the ... system during the last ten years?

14.The book is very … written, but very warm.

15.... is the oldest of social sciences.

Ex.2.Look at the following derivatives. Use your knowledge of English and logical reasoning to explain the meaning of each word below.