NHÓM 7

I. Filling

Choose the correct answer for each of the following questions.

1. Economists have different theories. The … strongly influences U.S

economic policy today.
A. Adam Smith’s theory
B. Marxism theory
C. theory of Keynes
D. supply and demand theory
2. In a planned economy, ...... make mostly allocation decisions.
A. firms
B. the government
C. consumers
D. workers
3. Macroeconomics focuses on ……… such as Gross Domestic Product,
growth rate, unemployment, inflation and so on.
A. economy – wide phenomenal
B. the allocation of scarce resources
C. the changes in individuals and bussiness
D. account taxes and regulation created by government
4. The federal government collects revenue from a variety of taxes, in there
…… are designated as federal funds.
A. payroll taxes
B. customs duties
C. excise taxes
D. income taxes and corporate taxes
5. Fiscal policy is ……… when the Congress cut tax rates or increase
government spending.
A. expansionary
B. contractionary
C. deflationary
D. restraint
6. The higher the tax rate, the more people are tempted to cheat. ……… is an
illegal activity, and it cludes dishonest tax reporting, undeclared part – time
evening job, etc.
 A. Tax avoidance
B. Tax evasion
C. Tax pressure
D. Tax reduction
7. One type of transactions in the forein exchange market is ……… which
refer to the buying or selling of foreign currency with spot exchange rate at
the time of the transaction and time frame for settlement within two business
days.
A. cash transactions
B. forward transactions
C. financial transactions
D. spot transactions
8. Monetary Policy is ……. when the money supply is increased.
A. expansionary B. restrictive C. contractionary D. B and C

9. Equilibrium occurs when quantity supplied is ……. the quantity demanded.

A. not equal to
B. greater than
C. smaller than
D. equal to
10. If the price increases, the quantity a buyer will purchase will …. and the
quantity supplied will ….
A. increase/ decrease
B. decrease/ increase
C. increase/ increase
D. decrease/ decrease
II. Reading comprehension

Read the following text and choose the best answer.

Supply and Demand

In the business world, it’s common to hear and see references to supply and
demand. With that said, few individuals possess a thorough understanding of the
idea and its wide-ranging impact on markets, prices, and consumers. In short,
supply and demand refers to the force of consumers (or how much customers
want or need to buy something) in relation to the available supply (or how much of
something companies are able to sell). Generally speaking, high demand results in
limited supply and increased prices, and low demand results in an ample
supply and decreased prices.

This latter phenomenon - the correlation between supply and demand and
prices-might sound confusing at first, but it’s actually rather simple. When there
isn’t enough of something available for sale to satisfy demand (or so that everyone
who wants this “something” can simply purchase it), manufacturers, or businesses
that produce a product or products, charge more; they are able to do so because
they aren’t faced with competition (as whatever they’re selling is in demand and
presumably not offered by many other businesses), and customers are willing to
pay more to secure said product. Inversely, if something is available in abundance,
companies will have to contend with competition, or actions taken by a company
that’re designed to improve its market standing, sales, and ultimately, profits.

An example will make the concept of supply and demand entirely clear.
Imagine that a company creates a fantastic video game system that many
customers want to buy. Demand will build both naturally and as the product isn’t
available to buy (this marketing technique is utilized by many companies today;
not being able to purchase something seems to create consumer buzz), and if the
supply doesn’t increase to give every willing customer a system, prices will rise. In
other words, if customers have no other way to buy the system than through its
manufacturer, and are having a hard time finding the system to buy, they’ll be
willing to pay more to buy it.

On the other side of the coin, a product that’s not proprietary, is widely
accessible, and can be sold by any company - pasta, for instance - will be
manufactured, marketed, and sold by a number of businesses. One company might
sell a box of pasta for $10, and another company could respond to this price by
selling their own pasta for six dollars, and another company could sell their pasta
for four dollars, and so on and so forth until the price has been driven down to a
very affordable rate. Demand won’t be particularly high in this scenario, as there
will be plenty of the product at-hand to go around. Moreover, demand comes
before competition; if demand is relatively low because a supply is high, prices
will fall and some degree of competition will occur.
1. What is supply and demand?
A. The amount of something that’s available to purchase
B. How much consumers are willing to pay for a product
C. The maximum possible price for a product
D. The force of consumers in relation to the available supply
2. What prices do high and low demands create, generally speaking?
A. High demand creates low prices
B. Low demand creates high prices
C. High demand creates high prices and low demand creates low prices
D. Both demand types create low prices
3. If a company produced a small quantity of an in-demand product, what
would happen to prices?
A. They would rise
B. They would fall
C. They would stay the same
D. None of the above

4. Companies sometimes limit their supplies to:

A. Decrease demand
B. Increase prices
C. Increase demand and lower prices
D. Decrease demand and lower prices

5. What is commonly associated with low demand and low prices?

A. Proprietary products
B. Ample competition
C. Items that can be crafted by many companies
D. B and C

III. Complete sentences

Complete the sentences below, using the given words

1. Smith/ believe/ people/ act/ their/ own/ self-interest/ produce/ good/ wealth/
benefit/ all/ society.
🡪…………………………………………………………………………………
……………………………………………………………………………………

2. If/ buy/ willing/ and/ able/ buy/ less/ all/ the/ various prices,/ there/ is/
decrease/ demand,/ and/ demand curve/ shifts/ to/ left.

🡪…………………………………………………………………………………
……………………………………………………………………………………

3. Microeconomics/ generally/ study/ individual/and/ business/ decision,/

macroeconomics/ look/ higher/ up/ country/ government decision.

🡪…………………………………………………………………………………
……………………………………………………………………………………
……………………………………………………………………………………

4. Microeconomics/ a/ branch/ economic/ deal/ with/ how/ consume/ and/ firms/

behave/ while/ make /decision/ the/ allocate/ scare/ resource.

🡪…………………………………………………………………………………
……………………………………………………………………………………
……………………………………………………………………………………

5. If/ price/ a/ specific/ good/ service/ increase,/ quantity/ buy/ will/ purchase/
decrease./

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IV. Matching

Match the words or phrases with the correct answers.

1. Unemployment rate a. The excess of government expenditures

(on goods, services and transfer payments)
over the government’s tax revenues.

2. Government budget deficit b. Involves the use of government spending,

taxation and borrowing to influence both
the pattern of economic activity and also
 the level and growth of aggregate
demand, outfut and employment.

3. Monetary policy c. The number of jobless indiduals who are

actively looking for work divided by total
of those employed and unemployed.

4. Fiscal policy d. Involves the use of interest rates to

control the level and rate to growth of
aggregate demand in the economy.

5. Tax deductive e. An adjective describing expenditures that

can be taken away from taxable income
or profits.

1-….. 2-….. 3-….. 4-….. 5-…..

V. Answer the questions

1. What are some shift factors of demand, supply?

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2. How to make optimal trade-offs?

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VI. Translate from English to Vietnamese

1. The global crisis that had its roots in the 2007 meltdown in the U.S. mortgage
market is a good case study in fiscal policy. The crisis hurt economies around
the globe, with financial sector difficulties and flagging confidence hitting
private consumption, investment, and international trade.
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2. During its 15 years of business in the UK, Starbucks has paid just £8.6
million in taxes, despite the chain's sales of £400 million last year alone. Under
pressure from public opinion, this year Starbucks agreed to pay taxes of £5
million($8million).
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3. A broker is considered to be a financial expert who acts as an intermediary

between the sellers and the investors.
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VII. Translate from Vietnamese to English

1. Quy luật cung cầu có sức ảnh hương không hề nhỏ đối với thị trường cổ
phiếu. Khi lượng khi lượng cầu tăng lên, mức giá cũng tăng theo. Và ngược lại
khi mức cầu giảm xuống kheo theo mức giá cổ phiếu cũng giảm theo.

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2. Dự trữ bắt buộc có tác động trực tiếp đến cung tiền, khi tỷ lệ dự trữ bắt buộc
càng thấp thì số tiền ngân hàng được cho phép vay và cung cấp ra thị trường với
số lượng lớn hơn. Cùng với tác động là số nhân tiền tệ, tức là tỷ lệ dự trữ bắt
buộc càng thấp thì mức độ ngân hàng thương mại làm tăng cung tiền càng nhân
lên gấp bội.

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3. Trong lịch sử, phát hành thêm tiền đã từng là một cách tài trợ cho thâm hụt
ngân sách, nhưng do hậu quả nghiêm trọng của nó là dẫn đến lạm phát ở mức
cao nên ngày nay cách này hầu như không được chính phủ của bất cứ quốc gia
nào sử dụng nữa. 

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