Name : Muhartsal Raihan

NIM : 2102055003

Class : 1A Ekonomi Islam

The Science of Economics

The science of economics is based upon the facts of our everyday lives. Economists
study our everyday lives and the general life of our communities in order to understand
the whole economic system of which we are part. They try to describe the facts of the
economy in which we live, and to explain how it works. The economist's methods should
of course be strictly objective and scientific.

We need food, clothes and shelter. We probably would not go to work if we could satisfy
these basic needs without working. But even when we have satisfied such basic needs,
we may still want other things. Our lives might be more enjoyable if we had such things
as radios, books and toys for children. Human beings certainly have a wide and very
complex range of wants. The science of economics is concerned with all our material
needs: it is concerned with the desire to have a radio as well as the basic necessity of
having enough food to eat.

Thus economics is a social science concerned with the production, distribution,

exchange, and consumption of goods and services. Economists focus on the way in
which individuals, groups, business enterprises, and governments seek to achieve
efficiently any economic objective they select.

Standard economics can be divided into two major fields. The first, price theory
or microeconomics, explains how the interplay of supply and demand in competitive
markets creates a multitude of individual prices, wage rates, profit margins, and rental
changes. The second field, macroeconomics, deals with modern explanations of
national income and employment.

Reading Comprehension

Exercise 1. Answer the following questions.

1. What is economics?

economics is a social science concerned with the production, distribution, exchange, and
consumption of goods and services

2. What is it based upon?

The science of economics is based upon the facts of our everyday lives.

3. What do economists try to do?

 They try to describe the facts of the economy in which we live, and to explain how it works.

4. What should the methods of the economics be like?

The economist's methods should of course be strictly objective and scientific.

5. What three essential things do we need?

We need food, clothes and shelter

6. What might make our life more enjoyable?

Our lives might be more enjoyable if we had such things as radios, books and toys for children

7. What is economics as a social science concerned with?

concerned with the production, distribution, exchange, and consumption of goods and services

8. What do the economists focus on?

Economists focus on the way in which individuals, groups, business enterprises, and
governments seek to achieve efficiently any economic objective they select.

9. What two fields can standard economics be divided in?

The first, price theory or microeconomics, The second field, macroeconomics

10. What are macroeconomics and microeconomics?

Macroeconomics deals with modern explanations of national income and employment. And
microeconomics , explains how the interplay of supply and demand in competitive markets
creates a multitude of individual prices, wage rates, profit margins, and rental changes.

Exercise 2. Say whether these statements are true or false. Give your reasons.

1. Economics is a scientific study. (TRUE) cause on paraghraph 1, sentence 1.

2. Economists try to understand only part of the economic system. (FALSE) cause Economists
study our everyday lives and the general life of our communities in order to understand the
whole economic system of which we are part.

3. If we could satisfy our basic needs without working, we should still work. (FALSE) cause We
probably would not go to work if we could satisfy these basic needs without working.

4. Radios, books and toys are basic commodities. (FALSE) cause the basic commodities is a food,
clothes and shelter

5. The range of human wants is very complex. (TRUE) cause on paragraph 2,sentence 5.
 6. Clothes and shelter are non-essential human needs. (FALSE) cause Clothes and Shelter are
essential human needs.

7. Economic studies are essentially non-scientific. (FALSE) cause Economic studies is scientific.

8. Economists study the general life of our communities.(TRUE) cause on paragraph 1, sentence 2.

9. Economics is a social science.(TRUE) cause on paragraph 3, sentence 1.

10. Economics is concerned only with the production and consumption of goods and services.
(FALSE) cause economics is concerned with the production, distribution, exchange, and
consumption of goods and services.

Vocabulary
Exercise 1. Complete these sentences using the right words below.
Economist basic needs economics exchange demand

1. After completing the course in ___ economics __, the young man could determine how
to conduct his business to make a good profit.
2. The ___ demand __ of the present day is for engines of large power both for passeng
er and goods service.
3. She will _ exchange ____ currency at the airport.

4. He was recently appointed chief __Economist___ at the Bank of Scotland.

5. Donations may never be enough to cover these currently unmet __ basic need___.

Exercise 2. Find the right meaning.

1. Economist (D) a. meet the expectation

2. Objective(C) b. sharing something

3. Satisfy (A) c. not influenced by personal feelings or opinions

4. Distribution (B) d. an expert studies economics

5. Microeconomics(E) e. studies what is likely to happen when we make cho

ices.

Grammar
Exercise 1. Arrange these words into the correct sentences.

1. Tuesday - afternoons - on - seldom - the - computer - goes - to - she – lab

On Tuesday afternoons she seldom goes to the computer lab.

2. Been waiting - have - I- two hours- for over - finally- arrives train - the – w
hen
Finally I have been waiting for two hours over when the train arrives
3. Paperwork - the - all - with - me - leaving - always - was - she
She was always leaving me with all the paperwork
Exercise 2. What is incorrect in these sentences.
1. My best friend always helpful with problems.
My best friend is always helpful with problems.
Subject : My best friend
Linking Verb: is
2. The new student in the class very talkactive and friendly.
The new student in the class is very talkactive and friendly.
Subject: The new student
Linking Verb: is
3. During the meeting in the office discussed the scheduled.
During the meeting in the office we discussed the scheduled.
Subject: We
Verb: discussed
Object: The meeting
4. The clothes are lying on the floor should go to the washing machine.
The clothes are lying on the floor you should go to the washing machine.
Subject: you
Verb: lying
Object: The clothes
5. The chairs under the table in the dining room is quite comfortable.
The chairs under the table in the dining room are quite comfortable.
Subject: The chairs
Linking verb: are
Object: The table
6. The food for the guests at the party are on the long tables.
The food for the guests at the party is on the long tables.
Subject: The food
Linking Verb: is
Object: The guests
7. He has find the missing car keys.
He has found the missing car keys.
Subject :He
Verb: found
Object: Car keys
8. Have you ever saw a ghost?
Have you ever seen a ghost?
Subject: You
Verb:Seen
Object: Ghost
Auxiliary Verb: have
9. He may lies to you because he is not very truthful.
He may lie to you because he is not very truthful.
Subject: He
Verb: lie
Object: you
10. If my friend call, please tell them that I will return the call.
If my friend call, please tell him/her that I will return the call.
Subject: him/her
Verb: call

Exercise 3. Identify the subject, verb and object (identify yhe sentences above)