【正文】 precepts and norms of fairness. Should poor people be required to work if they are to get government assistance? Part 2 What is the Basic Economic Problem? Scarcity is a central concept in economics. Since ―… goods are limited and society must use its resources efficiently. Indeed, economics is an important subject because of the fact of scarcity and the desire for efficiency.‖ Here es the following terms due to the fact of scarcity: ?Economic goods: goods that are scarce or limited in supply. There is simply no sufficient goods or services to fulfill every want of people. Nothing is free to get. Therefore, something valuable should be paid in exchange for the goods or services wanted. ?Efficiency: ―Given unlimited wants, it is important that an economy make the best use of its limited recourses‖. ―Efficiency denotes the most effective use of a society’s resources in satisfying people’s wants and needs‖ opportunity cost: however we decide to use resources, we have to give up the opportunity to do something else. The next best choice that we give up is called opportunity cost, when decision is made to use resources in a particular way. Both individuals and nations have to be faced with the reality. Part 3 Economic System 1. How can the three fundamental economic questions be solved? Who shall answer the three basic economic questions ? ※ by anizing its productive resources in a certain way. ※ It depends on the economic system a society choose. 2. What are the main functions of an economic system? ※ The set of institutions and mechanisms by which a society provides answers to the three fundamental questions. ※ A mechanism which deals with the production, distribution and consumption of goods and services in a particular society. Types Traditional Command Market Mixed Who answer the questions People Government officials Individuals households and businesses plus government Characteristics subsistence economies。 production based on tradition。 distribution based on labor contribution production under mand。 no petition。 inefficient in resources allocation and production production, distribution, exchange and consumption under the force of market。 efficient。 unemployment。 No equality guaranteed governmentregulated market economy。 b. relating to the science of economics。 d. financially rewarding 2. product: a thing that is grown or produced for sale。 cargo shipped by sea or air. services: (intangible) nonmaterial product to be sold。 modity: a product or a raw material that can be bought and sold, especially between countries. ? 3. Capitalism is an economic system in which most industry is privately owned and production is motivated by profitseeking。 to be in line with the international conventions 國(guó)民經(jīng)濟(jì)整體運(yùn)行狀況 the overall performance of national economy 持續(xù)、穩(wěn)定、協(xié)調(diào)發(fā)展 stable, sustained and coordinated development 擴(kuò)大基本建設(shè)規(guī)模 to expand the capital construction Question 1 What is money? ※ 1. the official currency issued by a government or national bank 。 3. anything readily acceptable in exchange for goods or services. Lesson 3 Money and Banking Question 2 What are the functions of money? ※ Medium of exchange (payment) Store of value Measure of value Standard of deferred payment Question 3 What are the characteristics of money? ※ acceptability 。 durability Question 4 How many kinds of money do you know? ※ M1 includes currency and checking accounts。 Question 5 What are the functions of a bank? ※ a financial institution that accepts deposits and channels the money into lending activities. Learn before: Hire purchases: a procedure for purchasing goods under which the purchaser pays a deposit on receipt of the goods followed by a number of installments until the debt is cleared. The goods do not bee the property of the purchaser until the last installment has been Mutual funds: mutually owned funds invested in diversified securities. Shareholders are issued certificates as evidence of their ownership and participate proportionately in the earnings of the fund. 共同基金 。 Some people like to keep money for its own sake, but usually we look on it as a means of satisfying our needs and wants. 2 紙幣如果經(jīng)常觸摸會(huì)變的骯臟破損，不過(guò) 會(huì)定期對(duì)紙幣進(jìn)行回收，以新幣取而代之。 Coins and notes of various denominations can be used to buy large expensive items as well as small ones costing only few cents. 4 支票本身并不是錢(qián)，如果沒(méi)有存款來(lái)進(jìn)行 支付使支票兌現(xiàn)，那么這張支票便毫無(wú)價(jià)值。: one fourth。 : a half 5. Expression of signs: +: plus。 negative ?: multiplied by。 divided by。 per mile =: be equal to。 be equivalent to ≈: be approximately equal to ＜ : be less than ＞ : be greater than ≤, ≥ ∥ : absolute value ∑: summation of √: rootextracting Lesson 4 Organization of Business Questions for Discussion 1. Who are producing the goods and services that we need? ※ business firms. “Individual economic decisionmaking units: single business firms and households.”see lesson 2 Question 2 What is a business firm? ※ it’s an anization that brings together the factors of production to produce and/or distribute goods and services with the object of gains or profits. 3. What does “economies of scale” refer to? ※ Reductions in unit cost of output resulting from the production of additional units stem from increased specialization of labor as volume of output increases. Question 5: Do you know how many forms of business anization? ※ 1. according to products they produce. 2. by the ownership: stateowned, collectivelyowned an