KEY TO READING – HP1 – K45

UNIT 1: ECONOMIC ACTIVITY

I. ORAL QUESTIONS
a. to earn a living (and to produce goods and services)
b. goods and services
c. services
d. a car and some service which helps him to maintain his car.
e. the sum-total of what people do and what they want.
f. what they need and the money with which they can buy essential commodities.
g. essential commodities and services which satisfy their basic needs,
and non-essential commodities and services which provide their particular personal satisfaction
II. COMPREHENSION: TRUE or FALSE
a. True
b. False (Goods – not Services)
c. False (To make it TRUE, the word “respectively” should be added at the end of the sentence 
Schools and hospitals provide education and medicine, respectively)
d. False (manufactured)
e. True
f. False (An economic activity – not An economic system)
g. True
h. False (Economic system – not Economic activity)
i. True
j. False (They hope to earn enough money to buy….)
III. VOCABULARY
a. services b. example c. cars d. undertake
e. essential f. enough g. personal

IV. WORD STUDY

a. national b. natural c. educational d. commercial e. personal

V. SENTENCE STUDY
1. The terms are very good
2. Jim is choosing the bank loan
3. Jim has to pay over a period of five years
4. The number of foreign tourists to Japan increases every year.
5. At the moment they are working on many projects.
6. The messenger takes the packages everyday.
7. Next year Alison is going to apply for the business course.
8. Mr. Blake approved a pay rise for you at the meeting yesterday.
9. We decided to finance the new hotel in Cairo.
10. 25 percent of the international students study trade.
UNIT 2: THE SCIENCE OF ECONOMICS

I. ORAL QUESTIONS
a. a scientific study (according to the text)
b. the facts of our everyday lives
c. everyday lives and the general life of our communities in order to understand the whole
economic system of which we are part.
d. to describe the facts of the economy in which we live and to explain how it all works.
e. strictly objective and scientific.
f. food, clothes and shelter
g. all our material needs.

II. COMPREHENSION: True or False?

a. True
b. False (the whole – NOT only part …..)
c. False (we would not go to work)
d. False (NOT basic)
e. True
f. False (essential – NOT non-essential)
g. False (scientific – NOT non scientific)
h. False (two things: our everyday lives and the general life of our communities)

III. WORD STUDY

a. economists
b. economics
c. economic
d. economical
e. economy
f. economically

IV. SENTENCE STUDY

1. The company built a new factory and employed over 500 people.
2. The government is trying to control inflation, but/yet inflation is still running at more than 5%.
3. The price for that typewriter is too high, so Mrs Peterson is not going to buy it.
4. She wants to order some shoes, but/ yet she needs to confirm the price first.
5. The bank continues to respond well to market dynamic both at home and abroad (= not only at
home but also abroad)
6. We didn’t discuss item 3 on the agenda, for there was hardly anytime.
7. People can call a computer screen either a monitor or a VDU.
8. You may talk to the General Manager about the production target, or you can consult the
Production Manager about it.
9. The finance operations sector includes both foreign exchange operations and accounting.
10. Manual workers need neither high qualifications nor good management skills.
UNIT 3: UTILITY
I. ORAL QUESTIONS
a. Our basic needs are simple, but our additional individual wants are often very complex.
b. Utility is described as the characteristic of satisfying a want and the relationship between a
consumer and a commodity.
c. The difference between a vegetarian who does not want meat (but rate the utility of bananas
very highly) and a meat-eater who may prefer steak.
d. The difference between a mountain-republic country (like Switzerland) with little interest in
submarines and maritime nations with great interest in them.
e. The high utility of bombs and the low utility of pianos in wartime.
f. An increase in supply of paper leads to a fall in demand for it.
g. The utility of a commodity decreases as the consumers’s stock of that commodity increases.

II. COMPREHENSION: True or False?

a. False – Our basic needs are simple
b. False – Our wants are satisfied in different ways by all commodities.
c. True
d. False – Vegetarians rate the utility of bananas very highly.
e. True
f. False – In wartime the utility of pianos is low.
g. True
h. True

III. VOCABULARY
a. additional
b. characteristic
c. maritime
d. tastes
e. priority
f. sharply
g. quantity
h. falls

IV. SENTENCE STUDY

1. The country’s economy is in difficulty; moreover, the government is facing increasing pressure from
the opposition.

2. Business practices differ from country to country; therefore, (as a result, // consequently,)
businessmen do not always face the same risks.

3. Retirement is compulsory at the age of 65; however, employees may retire upon reaching the age of 60.

4. Profits have to increase by about 10%; otherwise, the company is not going to achieve its objectives.

5. All employees can get a four-week paid holiday each year; besides, the company provides free
medical insurance for them.

6. Some advertisers try to push mediocre products on the public; thus, the consumers should beware.

7. Don't let him take on too much work; otherwise, he will not do anything properly.
8. The measures to cut unemployment have been very effective; therefore, there is now less than 5% of the
population out of work.

9. He presented his opinion at the board meeting; nevertheless, I think he gave a one-sided view of the
problem.

10.Less-developed countries offer investment incentives to attract foreign companies; moreover, there's cheap
labour there.
UNIT 4 – PRICES AND UTILITY

I. ORAL QUESTIONS
a. In some systems it is possible for an individual to bargain over prices.
b. He/She is unable to change the prices of the commodities he wants.
c. He/ She will go on buying a commodity on the condition that he / she continues to be
satisfied.
d. He shows that his satisfaction is still greater than his dislike of losing money.
e. With each successive purchase, however, his satisfaction compensates less for the loss of
money.
f. He/ She will stop buying the commodity at the current price when the financial sacrifice is
greater than the satisfaction of eating bananas.
g. The quality of the commodity remains unchanged.
h. The marginal utility of the commodity to the consumer has changed.
i. The consumer’s desire tends to diminish.

II. COMPREHENSION: True or False?

a. True
b. False – It is generally not possible for the individual to change the prices of the commodities
he wants.
c. True
d. False - When a consumer becomes dissatisfied at paying the current price for something, he
pays less stops buying it.
e. False - The financial sacrifice becomes too great when while the quality of the commodity
gets worse stays unchanged.
f. True
g. True
h. True
i. False – The utility of a product changes but its nature stays the same.
j. True

III. WORD STUDY

A. Nouns
a. buyer
b. seller
c. user
d. worker
e. banker
f. miner
g. producer
h. organizer
i. manager
j. beginner
k. breeder
l. performer
m. cattle breeder
n. house owner
o. tax payer
p. whisky producer
q. bank manager
B. VERBS
a. regulate
 b. complicate
c. simplify
d. relate
e. realise
f. nationalise
g. satisfy
h. select
i. specify
j. specialise
k. influence
l. indicate

IV. SENTENCE STUDY

1. When there is a vacancy in the company, the Personnel Manager and his department have to recruit
a new employee.
2. The Personnel Department decides who receives an application form after it studies introductory
letters from applicants.
Before the Personnel Department decides who receives an application form, it studies introductory letters
from applicants.
3. They found a good agent for their company in Japan while / When they were marketing their
products.
4. He received his money as soon as he presented the necessary documents to the bank.
5. Since the company launched a new product, it has expanded the market for that new product.
6. Consumers have a tendency to buy more where / as credit cards are accepted for payment of the
merchandise.
7. Some women prefer to shop when they can bargain.
8. Most foreigners pay cash when(ever) they do their shopping in Vietnam.
9. Foreign representative offices want to move as near as they can to the city centre.
10. They carried out the project as they plan.

UNIT 5: SUPPLY

I. ORAL QUESTIONS
a. They are goods that cannot be stored for any length of time without going bad.
b. The supply of perishables and the stock of perishables available at any time
c. A rise in prices tends to increase supply while a fall in prices tends to reduce it.
d. It encourages producers to make more goods (Or: it encourages more production)
e. It causes a reduction in production.
f. It may cause them to go out of business completely (Or: It may cause their bankruptcy)
g. It can lead to a glut on the market which may cause prices to fall sharply.
h. There will be changes in prices, resulting in changes in the quantity of a particular
commodity.
i. Household goods and furniture
j. It can be increased or decreased rapidly in response to market prices.

II. COMPREHENSION –
A. True or False?
a. True
b. True
c. False –
The actual stock of cars in a factory is usually not the same as the supply of cars available
on the market.
 d. False
According to the Law of supply, a rise in prices tends to reduce increase supply
e. True
f. True
g. False
Changes in prices lead to a change in the quality quantity of a commodity
h. True

B. PUNCTUATION
Non-perishable goods such as coal, steel, cars and aeroplanes can be stored for considerable
periods of time without loss of value. This is not true, however, with perishables which must
be placed on the market as quickly as possible. If they are not sold quickly, they will
deteriorate. If they deteriorate while in storage or in the shops, both producers and
distributors lose a large amount of money. If there is a glut of certain perishables, these
commodities must be sold quickly even if the selling price is too low for a satisfactory
profit.

III WORD STUDY

a. adjustment
b. arrangement
c. encouragement
d. measurement
e. assessment
f. investment

IV. SENTENCE STUDY

1. They were not able to get the money from the bank because their documents did not meet the terms of
the Letter of Credit
2. Mr. Laurier is such a reliable customer that we have never had any trouble getting payment from him.
3. Since you're our regular customer, we can give you a five- percent discount.
4. The company is going to introduce such new machines as computers, word-processors and faxes so
that productivity of office work can increase.
5. He places orders for computer parts so regularly that we can offer him 10% off the list price.
6. As / Since Transworld handles export - import documentation, it will prepare the bill of lading and
customs entry forms on our behalf.
7. The order for computer parts will be so large that the purchasing manager wants to arrange
insurance cover for the shipment of the goods.
8. Although the shippers handled the consignment carefully, all the machines were damaged beyond repair.
9. The company has moved to the city centre in order that / so that it may be better placed to take on more
business.
(Or: The company has moved to the city centre in order to be better placed to take on more business
10. Sales have not increased even though the company has spent a lot of money on advertising.
 KEY TO READING HP1 – K45
UNIT 6: DEMAND
I. ORAL QUESTIONS
a. It is a response to changes in price
b. Demand is a consumer’s desire or want together with his willingness to pay for what he
wants.
c. It is indicated by our willingness to offer money for particular goods or services.
d. Money is a means of exchange between commodities which have a value to us.
e. When we exercise our choice, we base on our personal scale of preferences.
f. In our scale of preferences, luxurious commodities which help us to be comfortable
come second ( then).
g. Our third priority (finally) is non-essentials which give us personal pleasure.
h. Elasticity of demand is a measure of the change in the quantity of a good in response to
demand.
i. It is inelastic when a good is regarded as a basic necessity.

II. COMPREHENSION – True or False?

a. True
b. False – Money is not usually valuable in itself.
c. True
d. True
e. True
f. False – Demand for essential commodities is always elastic inelastic

III. VOCABULARY - Opposites

a. majority
b. minimum
c. practical
d. individual
e. liquid
f. complicate
g. short-term

IV. WORD STUDY

A. The active use of able
a. The plan is workable.
b. Market conditions is changeable.
c. Economic conditions is variable.
d. These policies are suitable.
e. Those products are valuable.
f. Some investments are profitable.
B. The passive use of able.
a. The commodity is marketable.
b. The plan is testable.
c. The flow of work is measurable.
d. The relationship is definable.
e. The product is obtainable.
V. SENTENCE STUDY: Defining relative clauses
1. The sum of money (that) you borrow and you must repay is called capital.
2. A manufacturer whose costs are lower because of mass production can sell to customers at a
lower price.
3. The presentation that was on the subject of “Purchasing high technology" was a success.
4. He deals with the customers who delay payment of their accounts.
5. The person (that) you owe money to is your creditor.
6. The office where I am working has been in operation for ten years.
7. We may never know the real reason why the General Director resigned.
8. No one can predict the day when a business can go bankrupt.
9. The person who owes money to you is your debtor.
10. Corporations whose investments lead to new manufacturing techniques can afford costly
research and development.
--------------------------------------------------------------------------------------------------------------

UNIT 7 – LABOUR

I. ORAL QUESTIONS

a. In addition to being a means of exchange, money is a means of measuring the value of

men’s labour.
b. In economic theory, “labour” is any work undertaken in return for a fixed payment.
c. because it receives no fixed payment in return.
d. He measures the services which people render to each other.
e. He is not concerned with the services which people provide for no financial reward.
f. objective and scientific
g. religious and subjective
h. The work of the nurse and that of the farm worker are both measurable in terms of payment
received.
i. In the economic sense, labour is not concerned with distinctions of social class.
j. self-employed.
k. He receives the surplus from the whole business.
l. It is called profit.

II.COMPREHENSION
a. True
b. False – because it receives no fixed payment.
c. False - The economist is not interested in the services which people provide for nothing.
d. True
e. True
f. False – Economists say that the activities of farm workers and nurses are very different.
g. False – Labour in the economic sense is also concerned with the payment of wages in return
for work in general (not to any particular labour force).
h. False – he receives the surplus – not fixed payment.
III. WORD STUDY
A. Negative words
a. disability
b. displeasure
c. disagree
d. disobey
e. disengaged
f. disconnect
g. disqualify
h. discontinue
i. dispossess
j. discomfort
B. Adjectives from nouns
a. monetary
b. additional
c. basic
d. beneficial
e. commercial
f. capitalist
g. responsible
h. natural
i. local
j. major
k. minor
l. relative

IV. SENTENCE STUDY

1. The Managing Director of Gourmet LTD is Mr. Mann, whose expertise on financial
investments is well-known.
2. It is important to sometimes see clients in a more relaxed atmosphere where you can get
to know your business partner better.
3. Mr. Sanchez, whom Mr Blake met at the convention in Paris, has been the manager of
General Union Bank PLC for five years.
4. The man who got an electric shock when fixing a duplicator is an engineer of Travel
Services.
5. Stockholders whose financial liability is limited are not responsible for a company's
debts.
6. Paul Rime manages Impex International, which employs 94 people in five offices.
7. Tet is the time when all offices and businesses are closed.
8. The factory where my brother is working finances its expansion by issuing more stock.
9. The annual conference of the Association of European Exporters adjourns at 11 o'clock,
when all participants will have coffee break.
10. Mr. Green is planning the tour (that) his clients will be most interested in.
11. The document which shows all your transactions is called a statement.
12. The secretary whose salary has not been raised for two years is going to leave the firm.
 KEY TO READING HP1 – K45
UNIT 8: CAPITAL
I. ORAL QUESTIONS
a. Profit is the surplus which accumulates as a result of productive work.
b. He obtains his surplus after he pays the necessary expense of his business and the wages of his
employees.
c. He may be required to share it with others who have provided the capital with which he started his
business.
d. Most businesses need capital in order to start productive work and the capital pays for the
accomodation, machinery and other items the business needs.
e. because the business may not be successful.
f. The employers and the providers of capital do.
g. The success of the business does.
h. The previous surpluses accumulated from the previous business activities are used as the capital
for new businesses.
i. A certain part of the profits is ploughed back into the system
j. It is ploughed back in order to create capital.
k. machinery, cash, land, houses and shares
l. railways, docks, roads, airports and state funds of money
II. COMPREHENSION
A. True or False
a. False – Labour is work performed by for an employer at a negotiated rate.
b. False – The surplus is obtained after the necessary expenses of a business are paid.
c. True
d. True
e. False – The employees do not bear the risk
f. False – The capital (NOT the surpluses)
g. True
h. False – not in economic terms
B. Punctuation
There must always be people willing to bear the risk of new business undertaking. In addition to
simple risk bearing; however; it is necessary to have people who will control and coordinate the
various factors of production. Such people should decide the nature, the quantity and the
distribution of new products as well as bear the risk of success or failure. Economists call the
person who undertakes these functions an entrepreneur. This term is French and means one who
undertakes something.
III. VOCABULARY - Substitute words
a. performed
b. accumulates
c. obtains
d. provided
e. risk
f. bear
g. justified
h. saving
i. previous
IV. WORD STUDY
a. He is not interested in house owning
b. He is interested in profit making
c. The company has decided on a profit sharing policy
d. The business of capital raising is sometimes difficult
e. The problem of good policy making is part of politics.

V. SENTENCE STUDY
1. Sales will increase if there is a good advertising campaign.

2. Fatal accidents will happen unless workers observe safety regulations.

3. There will be no new products if they do not do any research.

4. Tourists will stay at a Ryokan if an excellent service is provided.

5. They won't attract the best people unless they offer better salaries.

6. The company can't charge higher prices unless it upgrades the product.

7. Send for a prospectus if you want more information about courses at Central College.

8. There won’t be a price war unless competitors enter the market.

9. Unit costs must be reduced if the company rationalises production.

10. Labour costs won’t be lower unless the factory install robots.
UNIT 9: MARKETS

I. ORAL QUESTIONS
a. It was a place where people gather to buy and sell goods.
b. It is a set of conditions permitting buyers and sellers to work together.
c. It takes place among sellers of the same commodity.
d. It influences the prices prevailing in the market.
e. Competition, supply and demand
f. A market is created whenever people who are willing to sell a commodity contact people who are
willing to buy it.
g. They can communicate by letter, by telephone or through their agents.
h. The lowest price seller will accept and the highest which consumer will pay.
i. The ruling price indicates the point where supply and demand meet.

II. COMPREHENSION
A. True or False
a. True
b. True
c. Câu này cần thêm: “and sellers”
“c) The competition between buyers and sellers of a commodity influences the prevailing prices.”
 False – NOT: “between buyers and sellers” – BUT: “among sellers and among buyers”
d. True
e. False – not only when buyers and sellers meet in person, but also when they work through their
agents”
f. True.
g. False – The highest price buyers will offer and the lowest price sellers will accept.
h. True
B. Arrangement of the sentences
c) Certain commodities have a wider market than others.
e) Durable goods, for example, have a far wider market than perishable goods.
b) Commodities like these can be bought and sold and stored without difficulty by people, who
live far from each other and from the sources of supply.
d) In addition, commodities which are easy to transport, safe to handle and simple to grade are
generally in universal demand.
f) For this reason such goods are a good commercial proposition simply because the risk of
investing in them is relatively low.
a) Finally, it is interesting to note that many buyers and sellers never see the commodities which
they buy and sell.
III. WORD STUDY
a. vary
b. varied (= of many different types)
c. various (different)
d. variety
e. variation
f. variable (= likely to change often)
IV. SENTENCE STUDY
1
1. If Alison got the qualifications, she would change her job,

2. If she were young, she would apply for that job.

3. If they had some agents to distribute their products, they would develop some kinds of sales net
work there,

4. If they were provided with bank references, they may check their new customer out.

5. If they changed their sales approach, they would reach all their potential customers,

2
1. We would be worried about his payment unless he were a reliable customer.

2. We can reduce the price unless it were a big order.

3. They wouldn’t need to break into overseas markets unless the home market were already
saturated.

4. He couldn’t send you copies of all the invoices for your records unless he were responsible for
invoicing customers,

5. They wouldn’t have to terminate the contract unless sales were below target.
UNIT 10 – MONOPOLIES

I. ORAL QUESTIONS
a. Free competition and large numbers of sellers are not always available in the real world.
b. A monopoly is a situation in which there may only be one seller or a very limited number of
sellers.
c. State monopoly, natural monopoly and legal monopoly.
d. Monopolies in steel and transport
e. They are examples of natural resources, the control over which is called natural monopoly.
f. They are permitted to have a full monopoly over the sale of their own products.
g. “cornering the market”
h. The sole trading opportunities take place.
i. Anti-trust laws
j. The Monopolies Commission

II. COMPREHENSION
A. True or False
a. True
b. False – In theory practice, there are four kinds of monopoly.
c. False - States always Some countries monopolize important basic commodities.
d. False - Egyptian Canadian nickel is a good example of a natural monopoly.
e. False – Cornering the market is quite legal illegal in the USA.
f. False – The Monopolies Commission consider that it is undesirable desirable to restrict
business mergers.
B. Punctuation
Monopolies and similar arrangements may be referred in Britain to the Monopolies Commission.
Between 1948 and 1966 the commission presented some twenty six reports. The government in
1965 passed a special act called the monopolies and mergers act which reorganised and enlarged
the Monopolies Commission. It provides for the investigation of services and mergers, especially
newspapers mergers, and improves and extends the government powers for taking action. The
action of the government is based on the Monopolies Commissions reports.
III. VOCABULARY
a. numerous
b. limited
c. situation
d. distinguish
e. important
f. comparatively
g. borders
h. kind
i. permit
j. types
k. trading
l. illegal
m. restrict
n. examines
o. mergers
IV. WORD STUDY
a. science
b. capital
c. industry
d. monopoly
 e. product
f. success
g. prestige
h. geology
i. nature
j. subject

V. SENTENCE STUDY
1. If the clerk had read the instruction, he wouldn’t have cut his fingers when using the paper
shredder.

2. If they had been satisfied with the contract terms, they wouldn’t have renegotiated the contract.

3 If the workman had hit a loose rail and fell, he wouldn’t have broken both of his legs.

4. If the customers had paid, he wouldn’t have born the risk.

5. If they had agreed to fix a commission at 15% on total sales, he wouldn’t have refused to be a sole
and exclusive agency for them.

6. If there hadn’t been two errors in the invoice, they wouldn’t have sent a letter of complaint to the
supplier.

7 If there hadn’t been a great deal of damage to the goods, they wouldn’t have got the surveyor to
inspect the case.

8. If this consignment had been handled carefully, they wouldn’t have forwarded the surveyor's report
with a claim.

9. If they hadn’t needed to complete orders for two of their major customers, they wouldn’t have
asked the supplier to ship the additional 8,000 pencils as soon as possible.

10. If Justin's hadn’t opened a new store in the shopping centre, they wouldn’t have launched a grand
opening sale to celebrate the occasion.
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