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Economic Issues

  1. Economic Issues

Vocabulary list

Inflation

Recession

Investment

Capitalism

Monopoly

Taxation

Entrepreneur

GDP (Gross Domestic Product)

Currency

Trade

Budget

Debt

Market

Shares

Profit

Export

Import

Supply and Demand

Fiscal

Subsidy

Passage: “Understanding Basic Economic Concepts”

Economics is integral to our society, with concepts like inflation and recession impacting daily life. Inflation refers to the general increase in prices, while a recession is a period of economic decline. Investment in various sectors drives economic growth. Capitalism, a prevalent economic system, encourages private ownership and free markets.

Monopoly, where a single entity dominates a market, can lead to unfair practices. Taxation is essential for government revenue, but it must be balanced to avoid burdening citizens. Entrepreneurs are key drivers of economic development, often leading to job creation. Gross Domestic Product (GDP) measures a country’s economic output. Understanding currency exchange is vital in global trade, which involves import and export activities.

Exercise I: Vocabulary Matching

Match the word to its meaning.

  1. Inflation – A. Period of economic downturn
  2. Recession – B. Rise in general price levels
  3. Investment – C. Total value of goods and services produced
  4. Capitalism – D. Putting money into assets for profit
  5. Monopoly – E. System of private ownership and free markets
  6. Taxation – F. Sole control of a market
  7. Entrepreneur – G. Person who starts and runs businesses
  8. GDP (Gross Domestic Product) – H. Money collected by the government
  9. Currency – I. Money in use in a particular country
  10. Trade – J. Buying and selling goods and services

Exercise II: True/False Questions

  1. Inflation decreases the cost of living. (False)
  2. A recession is a sign of economic growth. (False)
  3. Entrepreneurs have little impact on the economy. (False)
  4. GDP is unrelated to a country’s economic health. (False)
  5. Currency exchange is not important in international trade. (False)

Exercise III: Summary Completion

Fill in the blanks with words from the passage.

(1) and (2) are key economic concepts affecting society. (3) fosters economic growth, while (4) is an economic system based on private ownership. Understanding (5) is essential for measuring a country’s economic output.

(Answers: 1. Inflation, 2. Recession, 3. Investment, 4. Capitalism, 5. GDP (Gross Domestic Product))

Exercise IV: Discussion

  1. Global Economic Challenges: Discuss the major economic challenges facing the world today, like inflation and recession. How do these issues affect everyday life?
  2. Role of Entrepreneurship: Debate the role of entrepreneurs in stimulating economic growth. What makes an entrepreneur successful?
  3. Impact of Globalization: Explore the impact of globalization on local economies. Do you think globalization is more beneficial or harmful to economic stability?