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Some Economic Laws

Some Economic Laws. Economy consists of the economic system of a country or other areas; the labor , capital and land resources ; and the manufacturing , trade , distribution , and consumption of goods and services of that area. Some Economic Laws. Discussion.

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Some Economic Laws

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  1. Some Economic Laws • Economy consists of the economic system of a country or other areas; the labor, capital and landresources; and the manufacturing, trade, distribution, and consumption of goods and services of that area.

  2. Some Economic Laws

  3. Discussion 1- How can laws organise economic activities? 2-How can laws affect wages?

  4. What are your personal needs? • A car? • A house? • A bottle of whisky? • Money? Qs: What is this special characteristic of satisfying a want? -UTILITY

  5. Utility is not the same as usefulness ... • Economists describe utility as “the relationship between a consumer and a commodity”.

  6. Vocabulary expenditure: (n)the action of spending or using time, money, energy etc. purchase: (v) to buy something -the growing demand to purchase goods on credit commodity: (n)a product that is bought and sold -commodity prices fell sharply convenience: (n) the quality of being suitable or useful for a particular purpose, especially by making something easier or saving you time. -Ready meals sell well because of their convenience.

  7. Vocabulary • substitute: (n)a person or thing that you use instead of the one that you usually have, because the usual one is not available • priority: (n) the thing that you think is most important and that needs attention before anything else • remain: (v) to continue to be in the same state or condition -Please remain seated until all the lights are on • Satisfy: (v) if you satisfy someone's needs, demands etc, you provide what they need or want -The program is designed to satisfy the needs of adult learners.

  8. Vocabulary • quantity: (n) an amount of something that can be counted or measured -Huge quantities of oil were spilling into the sea

  9. Comprehension Questions • What determines utility? A: Our sense of priorities and quantitiy available to the consumer determine utility. It varies among different people and nations. • What is the relation between demand and prices? A: If the price of sth rises, we will buy less (e.g. cigarettes, food, etc.)

  10. Comprehension Questions • Explain the law of diminishing marginal utility? A: The consumer’s desire for a commodity tends to diminish as he buys more units of that commodity. • Explain the law of demand? A: A fall in prices tends to increase the demand for a commodity, while a rise in prices tends to decrease the demand.

  11. Further Questions • What is the principle of elasticity? • What are some essential and non-essential commodities? • In which cases can demand be inelastic?

  12. TRUE-FALSE • Utility is different from uselfulness in the study of economics. • Utility does not change from nations to nations. • As the stock increases, the utility of a commodity decreases. • Utility is related also to the laws of supply and demand. • Supply is said to be inelastic. TRUE FALSE TRUE TRUE FALSE

  13. REFERENCE cigarettes • they in line 20 refers to • they in line 25 refers to • its in line 26 refers to • it in line 33 refers to • this in line 42 refers to • them in line 51 refers to prices commodity’s Supply of a commodity Particular commodity Very high prices for the essentials of life

  14. VOCABULARY ITEMS 1- supplied 2- consumer 3- demand 4- essential 5- purchase 6- diminishing 7- commodities 8- convenient 9- remains 10- expenditure

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