财经英语-4.pptVIP

财经英语Financial and Economic English Review of Former Units -- Unit 1 What is economics? the study of mankind in the ordinary business of life; examines that part of individual and social action which is most closely connected with the attainment and with the use of the material requisites of well-being the study of decision-making economics material requisite decision making value judgment industrial relations social forces economic system historical background political forces What is the basic economic problem? Scarcity which wants are to be satisfied first, and on how resources are to be allocated and combined to satisfy the wants of the community What and how much to produce, and how to distribute the goods and services produced scarcity a resource which can be used for more than one purpose is in demand, and therefore a choice must be made on how to allocate the resource among the competing purposes allocate resources economic resources land, labor, and capital opportunity cost the want which was given up was the real cost of the want which was satisfied Review of Unit 2 price mechanism market mechanism the process by which prices rise and fall as a result of changes in demand and supply effective demand a desire to obtain an article accompanied by the ability and willingness to pay for it at the price asked law of demand buyers are likely to buy more of an item as the price falls law of supply as prices rise, sellers would like to sell more and will, if it is possible, offer a larger quantity for sale. demand curve supply curve demand schedule supply schedule vertical axis horizontal axis cover cost make profit equilibrium price at which the buyer is prepared to buy the quantity which the seller is prepared to sell at that price, so the market is cleared and there is no surplus and no shortage. consumer taste Review of Unit 3 price elasticity of demand measures how greatly a price change affects a change in dem