UNIT 1 MICROECONOMICS &

MACROECONOMICS
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CÁCH THỨC KHAI THÁC BÀI ĐỌC:

0982678586 – Nhung
ESP60.21CL3
(Với từng đoạn văn)
 Khai thác từ vựng:
- pronunciation + stress + intonation; meaning of words (in English)
- synonyms + antonyms;
- parts of speech: verbs + nouns + adj + adv
- uses of words: sentences for example
(Với toàn bài)
Sản phẩm sau mỗi bài học (Viết vào vở ở nhà – viết tay KHÔNG ĐÁNH MÁY)
- Vocabulary (từ, định nghĩa bằng tiếng Anh, cấu trúc, câu ví dụ)
- Hệ thống các câu hỏi chi tiết + trả lời (các câu chính trong các bài học)
Ví dụ:
1. What does economics study?/ What is the study of economics?
2. Who is an economist?
3. What are 3 main types of resources?
- Hệ thống câu hỏi main idea + trả lời

1. The different stages of production are placed in close proximity, thereby economizing
…………….. transport costs.
A. At B. in C. on D. for
Economize + on + sth –
2. The different stages of production are placed in close proximity, thereby …….
…………….. on transport costs.
A. economizing B. saving C. spending D. wasting
3. A country's ……danh từ……… is the wealth that it gets from business and industry.
A. economy B. economics C. economist D. economic
4. …………….. is the rate at which goods are produced.

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A. Productivity B. profitability C. responsibility D. creativity
ECONOMICS – KINH TẾ HỌC
A country's …………… economy (countable noun) is the wealth that it gets from
business and industry.
 The Japanese economy grew at an annual rate of more than 10 per cent.
5. An ………………… refers to the system of trade and industry by which the wealth of
a country is made and used.
A. economics B. economy C. economist D. economic
6. ……………… is the study of the way in which money, industry, and trade are
organized in a society.
A. economics B. economy C. economist D. economic
Kinh tế là một hệ thống các hoạt động sản xuất sản phẩm và cung cấp dịch vụ và thương
mại qua đó của cải của quốc gia được tạo ra và sử dụng.
Economy (uncountable noun) is the use of the minimum amount of money, time, or other
resources needed to achieve something, so that nothing is wasted.
(Sự tiết kiêm, không lãng phí)
 ...improvements in the fuel economy of cars.
 There was mostly silence. I have never known such economy with words.
If you make economies, you try to save money by not spending money on unnecessary
things.
 They will make economies by hiring fewer part-time workers.
Economic (adj) - of or relating to an economy, economics, or finance
- economic development: phát triển kinh tế
- economic theories: học thuyết kinh tế
Economics is the study of the way in which money, industry, and trade are organized in a
society.
Economics (n): the science that deals with the production, distribution, and
consumption of wealth, and with the various related problems of labor, finance,
taxation, etc.
- He gained a first class Honours degree in economics.
Economics studies how people choose to use scarce resources to produce goods and
services in order to best satisfy human demand.
An economist is a person who studies, teaches, or writes about economics.

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Something that is economical (adj) does not require a lot of money to operate. For
example a car that only uses a small amount of petrol is economical.
If you combine two or more things or if they combine, they exist together.
Lines of industry – ngành:

Look up dictionary for pronunciation, meanings and sentences

for example for the following words
Produce (v): sản xuất to produce sth
Product (n): sản phẩm
Production (n) sự sản xuất
Producer (n) nhà sản xuất, công ty sản xuất
Productive (adj) có năng suất
Productivity (n) khả năng năng suất
Productivity is the rate at which goods are produced.
- The third-quarter results reflect continued improvements in productivity.
- His method of obtaining a high level of productivity is demanding.
Distribute (v) phân phối
Distribution (n)
Distributor (n)
Consume (v) tiêu dung, tiêu thụ
Consumer (n)
Consumption (n) sự tiêu thụ
Consumer goods hàng tiêu dùng
Consumer price giá tiêu dùng
CPI
Satisfy (v) làm cho thỏa mãn
Satisfaction (n) sự thỏa mãn
Be satisfied with (adj) thỏa mãn cái gì đấy (bị động)
Satisfactory (adj) cái gì đó là thỏa đáng (chủ động)

Resources (n): nguồn lực

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A country's resources are the things that it has and can use to increase its wealth, such as
coal, oil, or land.
The resources of an organization or person are the materials, money, and other things
that they have and can use in order to function properly.
Resources can be divided into:
 Natural resources: land – đất đai, oil – dầu mỏ, coal – than đá, wind – gió, water
– nước, solar energy – năng lượng mặt trời, etc.
 Human resources: labor, energy, time, talent, knowledge, technology, inventions
– phát minh, patents – sang chế, etc.
 Capital resources (physical assets – tài sản dạng vật chất: buildings, equipment,
etc. + financial assets – tài sản bằng tiền: shares, bonds, accounts, investments,
etc.)
Talent is the natural ability to do something well.
- She is proud that both her children have a talent for music.
- The player was given hardly any opportunities to show off his talents.
- He's got lots of talent.
If something you want or need is available, you can find it or obtain it.
- The amount of money available to buy books has fallen by 17%.
- There are three small boats available for hire. [+ for]
- According to the best available information, the facts are these.
Have sth available
Well-being = Satisfaction (n)
- Someone's well-being is their health and happiness.
- Singing can create a sense of well-being.
- His work emphasized the emotional as well as the physical well-being of children.
[+ of]
Gain satisfaction from/ in sth: có được sự thỏa mãn từ …
Read the following text and translate into Vietnamese
Economics is the study of how people choose to use resources.
Resources (nguồn lực) include (bao gồm) the time and talent people have available, the
land, buildings, equipment, and other tools on hand, and the knowledge of how to
combine them to create useful products and services.
Important choices involve how much time to devote to work, to school, and to
leisure, how many dollars to spend and how many to save, how to combine resources to
produce goods and services, and how to vote and shape the level of taxes and the role of
government.

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Often, people appear to use their resources to improve their well-being. Well-being
includes the satisfaction people gain from the products and services they choose to
consume, from their time spent in leisure and with family and community as well as in
jobs, and the security (an ninh) and services provided by effective governments.
Sometimes, however, people appear to use their resources in ways that don't improve
their well-being. ( sử dụng 1 cách k có ích)
Economics is the study of the production and consumption of goods and the
transfer of wealth to produce and obtain those goods. Economics explains how people
interact (tương tác) within markets to get what they want or accomplish certain goals.
Since (Because) economics is a driving (định hướng) force of human interaction,
studying it often reveals why people and governments behave in particular ways.
There are two main types (2 nhánh) of economics: macroeconomics and
microeconomics. Microeconomics focuses on the actions of individuals and
industries( các doanh nghiệp = firm), like the dynamics (các mối quan hệ) between
buyers and sellers, borrowers and lenders (người đi vay và người cho vay).
Macroeconomics, on the other hand (mặt khác) , takes a much broader view by analyzing
the economic activity of an entire country or the international marketplace.
Microeconomics is the part(branch= nhánh) of economics that studies individual markets
and businesses, or how individual(từng doanh nghiệp, từng thị trường) people spend or
earn money.
individual markets and businesses = each/ every market and business
(a) Specific = particular (a) : những cái gì đấy cụ thể
A study of economics can describe all aspects of a country’s economy, such as
how a country uses its resources, how much time laborers devote to work and leisure, the
outcome(thành quả mang lại đầu tư các…) of investing in industries or financial
products, the effect of taxes on a population, and why businesses succeed or fail.
People who study economics are called economists (nhà kte học). Economists
seek to answer important questions about how people, industries, and countries can
maximize(tối đa hóa) their productivity (năng suất), create wealth (tạo ra của cải), and
maintain financial stability. Because the study of economics encompasses many factors
that interact in complex ways, economists have different theories as to how people and
governments should behave within markets.
Stable(a) -> stability (n) sự ổn đinh -> stabilize (v) ổn định
Toàn cầu hóa :
Đô thị hóa :
Hiện đại hóa : mordenlize

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quốc tế hóa :
bộ phận hóa: privatize

MICROECONOMICS
THE THEMES OF MICROECONOMICS - OUTLINE
I. The allocation of scarce resources.
(1) Trade-offs made by Consumers
(2) Trade-offs made by Workers
(3) Trade-offs made by Firms

II. Role of prices in the economy

(1) the influence of prices on behavior of consumers
(2) The influence of prices on behavior of workers
(3) The influence of prices on behavior of Firms

III. Central role of markets in the economy

(1) In a centrally planned economy. (give one example for explanation)
(2) In a market economy. (give one example for explanation)
In the automobile market: car prices are affected by competition among car
manufacturers and by the demand of consumers.

Read the following text and translate into Vietnamese

THE THEMES OF MICROECONOMICS
The Rolling Stones once said: “You can’t always get what you want.” This is true. For
most people (even Mick Jagger), that there are limits to what you can have or do is a
simple fact of life learned in early childhood. For economists, however, it can be an
obsession.
The first important theme of microeconomics is about limits/ limited resources –
the limited incomes that consumers can spend on goods and services, the limited budgets
and technical know-how that firms can use to produce things, and the limited number of
hours in a week that workers can allocate to labor or leisure.

Individuals = consumers + workers

But microeconomics is also about ways to make the most of these limits. More
precisely, it is about the allocation of scarce resources. For example, microeconomics

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explains how consumers can best allocate their limited incomes to the various goods and
services available for purchase. It explains how workers can best allocate their time to
labor instead of leisure, or to one job instead of another. And it explains how firms can
best allocate limited financial resources to hiring additional workers versus buying new
machinery, and to producing one set of products versus another.

Budgets = financial resources = capital = funds = finance

(the total amount of money that a company has to do business.)
limited number of hours in a week = limited time
Examples for limits are limited incomes, time, financial resources, …= limited resources
Allocate sth for/ to sth/ doing sth: phân bổ cái gì cho cái gì/ phân bổ cái gì để làm gì
Allocate sth to sbd
If one item or share of something is “allocated” to a particular person or for a particular
purpose, it is given to that person or used for that purpose.
- Tickets are limited and will be allocated to those who apply first.
- This year's budget allocated £15m to cycle safety in the capital.
- Costs relating to the purchase of materials may be allocated according to the
number of purchase transactions which have occurred.
- The government will ………… some money in the budget each year to service this
debt.
A. allocate B. subsidize C. give D. support
Benefit # profit/ loss
Money / currency/
Allocate (v): to give something to someone as their share of a total amount, to use in a
particular way:
- The government is allocating £10 million for health education.
- [ + two objects ] As project leader, you will have to allocate people jobs/allocate
jobs to people.
- It is not the job of the investigating committee to allocate blame for the disaster/to
allocate blame to individuals.
Make the most of sth: tận dụng tối đa, phát huy hết hiệu quả của cái gì = make full use of
sth
Decide to do sth: quyết định làm gì
Decision(s): quyết định
Take decisions/ Take a decision: thực hiện quyết định
Make decisions/ Make a decision: đề ra quyết định

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How are scarce resources allocated in a planned economy?

Vietnam’s economic model / system:

- Market economy under the government’s control
- Market economy under socialist orientation
- Multi-sector economy

In a planned economy such as that of Cuba, North Korea, or the former Soviet
Union, these allocation decisions are made mostly by the government. Firms are told
what and how much to produce, and how to produce it; workers have little flexibility in
choice of jobs, hours worked, or even where they live; and consumers typically have a
very limited set of goods to choose from. As a result, many of the tools and concepts of
microeconomics are of limited relevance in those countries.

Why are many of concepts of microeconomics not relevant in a planned economy?

Tell sbd to do sth: bảo/ chỉ định/ giao nhiệm vụ cho ai đó làm gì
- “Firms are told what and how much to produce, and how to produce it”: Các
doanh nghiệp được chỉ định sản xuất cái gì, bao nhiêu và như thế nào.
Have flexibility in sth/ doing sth
- Little vs a little khác nhau ở chỗ:
Little (mang nghĩa phủ định) – a little mang nghĩa khẳng định
Ví dụ: A: Can you lend me some money?
B: Sorry, I have little money. (I haven’t got enough money to lend you.)
B: yes, I have a little. (I’ll lend you a little money)

Các hình thái kinh tế (economic models): có 3 loại:

 Planned economy: kinh tế kế hoạch
 Market economy: kinh tế thị trường
 Mixed economy: kinh tế hỗn hợp
Economic model of Vietnam: the market economy under the Government’s (State’s)
control/ under socialism orientation/
It is a multi-sector economy in which different economic sectors exist together.
- State companies
- Private companies

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 - Joint-ventures: công ty liên doanh
- Foreign companies: công ty 100% vốn nước ngoài.
Phân biệt:
Overseas (adj + adv)
Overseas companies
Overseas students vs. foreign students
Define (v)
Definition (n)

In modern market economies, consumers, workers, and firms have much more
flexibility and choice when it comes to allocating scarce resources. Microeconomics
describes the trade-offs that consumers, workers and firms face, and shows how these
trade-offs are best made.
The idea of making optimal trade-offs is an important theme in microeconomics.
Let’s look at it in more detail.
Consumers
Consumers have limited incomes, which can be spent on a wide variety of goods and
services or saved for the future. Consumer theory describes how consumers, based on
their preferences, maximize their well-being by trading off the purchase of more of some
goods with the purchase of less of others. We will also see how consumers decided how
much of their incomes to save, thereby trading off current consumption for future
consumption.
Term (n) – thuật ngữ
Give examples for trade-offs made by consumers?/ How do consumers have to
make trade-offs based on their preference and their limited incomes?
- Consumers trade off the purchase of more of some goods with the purchase of less
of others.
- Consumers trade off current consumption for future consumption.
Consumer theory describes how they can best make trade-offs based on their preferences
and their limited budgets/ incomes to maximize their well-being.

As a student, what trade-offs have you ever made?

We have to choose which university to enter, which subjects to learn

Trade off sth with/for sth: đánh đổi cái gì cho cái gi
Exchange sth for sth: đánh đổi cái gì cho cái gì
Decide to do sth: quyết định làm gì

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 - Consumers decide how much of their incomes to save/ spend?
Choose to do sth: lựa chọn làm gì
Describe how to do sth/ how sbd do sth: miêu tả, cho thấy, chỉ ra (ai đó) làm gì như
thế nào.

Trade-off(s): A trade-off is a situation (where you make a compromise between two

things,) or where you exchange all or part of one thing for another.

Spend + (money) + on sth/ doing sth

- Consumers spend their limited incomes on a wide variety of goods and services.
Spend + (time) + doing sth: dành bao nhiêu thời gian làm gì
- We should spend one hour learning English every day.
Various (adj) đa dạng
- Goods in supermarkets are various now.
Variety of sth: đa dạng cái gì
Consume (v)
To consume an amount of fuel, energy, or time means to use it up.
- New refrigerators consume 70 percent less electricity than older models.
- ...plans which will consume hours of time and deplete your cash reserves.
Consumer (n)
Consumption (n)
Consumption is the act of buying and using things.
- Recycling the waste from our increased consumption is better than burning it.
- The consumption of goods is the ultimate aim of all economic endeavour.
CPI stands for Consumer Price Index: Chỉ số giá tiêu dùng
(US economics)
CPI is a measure of the average price of goods and services purchased by consumers,
used as an index of inflation

Workers
Workers also face constraints/ limits and make trade-offs. First, people must decide
whether and when to enter the workforce. Because the kinds of jobs – and corresponding
pay scales – available to a worker depend in part on educational attainment and
accumulated skills, one must trade off working now (and earning an immediate income)
with continued education (and the hope of earning higher future income). Second,
workers face trade-offs in their choice of employment. For example, while some people
choose to work for large corporations that offer job security but limited potential for

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advancement, others prefer to work for small companies where there is more opportunity
for advancement but less security. Finally, workers must sometimes decide how many
hours per week they wish to work, thereby trading off labor for leisure.

Workers may have to make choice of employment: they have to decide which job to
do and which company to work for
Constraints = limits = limited resources
A constraint is something that limits or controls what you can do.
- Their decision to abandon the trip was made because of financial constraints.
- Water shortages in the area will be the main constraint on development.
Make trade-offs
Enter the workforce = start working/ to work.

Sth + Be + available to sbd: Có gì đó cho ai

If something you want or need is available, you can find it or obtain it.
Depend on sth: phụ thuộc vào điều gì/ cái gì
In part = partly (Adv)

All the available money has been used.

Examples for trade-offs made by workers:

+ They must decide when to enter the workforce/ when to start working.
+ They have to choose what kind of job to do, which company to work for.

Because + the kinds of jobs – and corresponding pay scales – (which are) available to a
worker/ workers (chủ ngữ của câu) depend in part on educational attainment and
accumulated skills, (mệnh đề lý do)

one (a worker) must trade off working now (and earning an immediate income) with
continued education (and the hope of earning higher future income). (mệnh đề kết quả)

Loại hình nghề nghiệp với mức lương tương ứng mà người lao động có thể lựa chọn
…

Khái quát chung với danh từ đếm được:

- A(an) + danh từ số it

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 - (k có mạo từ) + danh từ số nhiều
educational attainment: trình độ học vấn
accumulated skills: kỹ năng được tích lũy
job security: sự ổn định công việc/ ổn định việc làm
potential for advancement = opportunity for advancement: cơ hội thăng tiến

Firms
Firms also face limits in terms of the kinds of products that they can produce, and the
resources available to produce them. The Ford Motor Company, for example, is very
good at producing cars and trucks, but it does not have the ability to produce airplanes,
computers, or pharmaceuticals. It is also constrained in terms of financial resources and
the current production capacity of its factories. Given these constraints, Ford must decide
how many of each type of vehicle to produce. If it wants to produce a larger total number
of cars and trucks next year or the year after, it must decide whether to hire more
workers, build new factories or do both. The theory of the firm describes how these
trade-offs can be best made.

Constrain (v) To constrain someone or something means to limit their development or

force them to behave in a particular way.
Ràng buộc, bó buộc, hạn chế(Constrain)
- Many working parents are too often constrained by inflexible working hours. [be
VERB-ed]
- The company is constrained to offer salaries that can only attract mediocre staff.
[be VERB-ed to-infinitive]
- The capacity of those roads will constrain the amount of car travel. [VERB noun]
Constraint (s): những giới hạn

A second important theme of microeconomics is the role of prices. All of the

trade-offs described above are based on the prices faced by consumers, workers and
firms. For example, a consumer trades off beef for chicken based partly on his/her
preferences for each one, but also on their prices. Likewise, workers trade off labor
(working) for leisure based in part on the “price” that they can get for their labor – i.e.,
the wage. And firms decide whether to hire more workers or purchase more machines
based in part on wage rates and machine prices.
Microeconomics also describes how prices are determined. In a centrally planned
economy, prices are set by the government. In a market economy, prices are determined
by the interactions of consumers, workers and firms. These interactions occur in markets

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– collections of buyers and sellers that together determine the price of a good. In the
automobile market, for example, car prices are affected by competition among Ford,
General Motors, Toyota, and other manufacturers, and also by the demands of
consumers. The central role of markets is the third important theme of microeconomics.
Actions
Interactions : quan hệ tương tác
These interactions occur in markets – collections of buyers and sellers that
together determine the price of a good.
= In market economies, prices are determined by Supply and Demand/ behavior of
sellers and buyers (consumers, workers and firms)

COMPREHENSION QUESTIONS
1. In a planned economy, who makes decisions on the allocation of scarce
resources?
2. Why are many microeconomic tools and concepts of limited relevance in Cuba
and North Korea?
Because governments make most of decisions on the allocation of scarce resources

Because government makes most of allocation decisions and the planned economy’s
agents (firms and individuals) have little flexibility in their choices = their allocation
of scarce resources)

3. What does the term “trade-offs” mean?

4. What can you learn from the consumer theory?
5. What does the consumer theory describe?
Consumer theory describes how they can best make trade-offs based on their preferences
and their limited budgets/ incomes to maximize their well-being.
6. Give some examples explaining the trade-offs made by consumers.
7. Give some examples explaining the trade-offs made by workers.
- They decide when to enter/ join the workforce.
- They make choice of employment/ decide which job to do or who to work for
- They allocate their time for labor or leisure.

8. Give some examples explaining the trade-offs made by firms.

- Firms decide whether to hire more workers or purchase more machines.

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 - Firms have to decide for whom to produce, what to produce, and how to produce
based on their limited resources.
Based on the functions of different divisions/ departments of a company:
+ Sales department
+ Production dept.
+ Marketing dept.
+ Purchasing dept. – phòng cung ứng vật tư
+ Financial dept.

9. What limits or constraints does the Ford Motor Company have to face?
10. What does the theory of the firm indicate?
11. What are three important themes of microeconomics?
+ the allocation of limited resources
+ the role of prices
- All of the trade-offs made by consumers, workers and firms are influenced by
prices
- Prices have strong influence on behavior of consumers, workers and firms
(Decisions of a firm such as buying more machinery or employing more workers
depend partly on prices of those machines or salaries paid to those workers.)
(when prices of raw materials increase, the company tends to reduce production
volumes)
(When the market prices of the company’s shares decrease, the company may decide
to raise more debts – e.i. taking loans from banks, instead of issuing fresh shares)
+ the role of markets
2 hands:
- The visible hand is governments
- The invisible hand is the market

What is the central role of the market in the economy?

- The central role of the market in the economy refers to the self-regulation of the
market via the interaction between prices of goods and services and their supply
& demand.
(Market forces: Supply, Demand and Price
Supply refers to all possible quantities of goods or services that the seller is able and
willing to sell at all possible prices.

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 - S + D of goods and services  P of these goods and services)
(When other things are constant, if the price of a good increases, its demand will
decrease.
When other things are constant, if the price of a good increases, its supply will
increase.)
When other things are constant, if demand of a good increases, its price is likely to
increase.
When other things are constant, if supply of a good increases, its price is likely to
decrease.

1. COUNTABLE NOUN
An allocation is an amount of something, especially money that is given to a particular
person or used for a particular purpose.
- There will be a closer review of funding allocations for future conferences. [+
for]
2. UNCOUNTABLE NOUN
The allocation of something is the decision that it should be given to a particular person
or used for a particular purpose.
- His sons quarrelled bitterly over the allocation of family resources.
- Town planning and land allocation had to be coordinated.
Theme: the subject of a discussion, essay etc.: chủ đề
- The theme for tonight’s talk is education.
A theme in a piece of writing, a talk, or a discussion is an important idea or subject that
runs through it.
- The theme of the summit was women as 'agents of change'.
Limit (n): a restriction (giới hạn)
- We must put a limit on our spending.
To limit (v): to set a restriction on (hạn chế)
- We must limit the amount of time we spend on this work.
Limited (adj) (opposite unlimited) not very great, large etc; restricted
bị hạn chế
- My experience in this aspect of business is rather limited.
Limitation (n) an act of limiting

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sự hạn chế
- The government has imposed a limitation on the number of foreign cars which
can be imported.
The limitation of something is the act or process of controlling or reducing it.
- All the talk had been about the limitation of nuclear weapons.
Limitation (n) a lack, eg of a particular facility, ability etc
mặt hạn chế
- We all have our limitations.
Limited (adj) (opposite unlimited) not very great, large etc; restricted
bị hạn chế
- My experience in this aspect of business is rather limited.
Limitless (adj) vô hạn
- She seems to have limitless energy.
V + able (Adj)
Ví dụ:
- rely (v) tin tưởng, tin cậy reliable (adj) có thể tin tưởng, đáng tin cây
- eat (v) eatable
- port (v) portable
- manage (v) manageable
- limit (v) limitable

1. COUNTABLE NOUN
Your budget is the amount of money that you have available to spend. The budget for
something is the amount of money that a person, organization, or country has available to
spend on it.
- She will design a fantastic new kitchen for you–and all within your budget.
- Someone had furnished the place on a tight budget.
- There can be more room in the budget for better foods if meat is kept to a
minimum.
2. COUNTABLE NOUN
The budget of an organization or country is its financial situation, considered as the
difference between the money it receives and the money it spends.

16
[business]
- The hospital obviously needs to balance the budget each year.
- ...his readiness to raise taxes as part of an effort to cut the budget deficit.
3. PROPER NOUN
In Britain, the Budget is the financial plan in which the government states how much
money it intends to raise through taxes and how it intends to spend it. The Budget is also
the speech in which this plan is announced.
- The Chancellor could use the Budget to bring in taxation reforms.
- ...other indirect tax changes announced in the Budget.
4. VERB
If you budget certain amounts of money for particular things, you decide that you can
afford to spend those amounts on those things.
- The company has budgeted $10 million for advertising. [V amount + for]
- The movie is only budgeted at $10 million. [be V-ed + at]
- I'm learning how to budget. [VERB]
Limits = limited resources
All resources (of consumers, workers, firms) are limited/ scarce.
Make the most of sth (v) tận dụng tối đa
When you purchase something, you buy it.
- He purchased a ticket and went up on the top deck. [VERB noun]
- Most of those shares were purchased from brokers.
The purchase of something is the act of buying it.
- Some of the receipts had been for the purchase of cars. [+
A purchase is something that you buy.
- She opened the tie box and looked at her purchase. It was silk, with maroon
stripes.
If you trade off one thing against another, you exchange all or part of one thing for
another, as part of a negotiation or compromise.
- Economic policy is about trading off costs against benefits. [V P n + against]
- I get up early and trade off sleep for exercise.
A trade-off is a situation where you make a compromise between two things, or where
you exchange all or part of one thing for another.
- ...the trade-off between inflation and unemployment. [+ between]
- ...the tradeoff of territory or land for peace.

17
Consume (v)
To consume an amount of fuel, energy, or time means to use it up.
- New refrigerators consume 70 percent less electricity than older models. [VERB
noun]
- ...plans which will consume hours of time and deplete your cash reserves. [V
Consumer
Consumption
Consumer price index (CPI)

3 ECONOMIC MODELS
- Planned economy (the role of the governments)
- (Free) market economy (the role of the market)
- Mixed economy
- Vietnamese economy: The market economy under the government’s control.
(Multi-sector economy)
Different economic sectors exist together in Vietnamese economy:
+ state companies: công ty nhà nước
+ private companies: công ty tư nhân
+ corporations: công ty cổ phần
+ joint-ventures: công ty liên doanh
+ foreign companies: công ty nước ngoài.
Kinh tế học vi mô nghiên cứu về …
Microeconomics is about ….
Microeconomics studies …
Microeconomics describes/ shows/ explains/ …
QUESTIONS FOR DETAILS
1. What does microeconomics study?
Microeconomics study how consumers, workers, and firms can best use their limited
resources/ can use their limited resources the most efficiently/ can make the most of
their limited resources in order to best satisfy their demand.
2. Why do consumers/ workers or firms have to make trade-offs?
Because their resources are limited, whereas/ while their demand is unlimited.
3. What are trade-offs?
4. What are 3 themes of microeconomics?
5. What is the most important theme of microeconomics? Why?
It is the allocation of scarce resources

18
 6. What does economics study?
7. What does microeconomics study?
8. What does macroeconomics study?

TOPIC QUESTIONS
Read the reading 1 thoroughly and answer the following questions
1. What are 3 main themes of microeconomics?
2. What are resources of consumers? How do they allocate their resources? (What
are examples for trade-offs made by consumers?)
3. What are resources of workers? How do they allocate their resources? (What are
examples for trade-offs made by workers)
4. What are resources of firms? How do they allocate their resources? (What are
examples for trade-offs made by firms?)
5. How are prices important?
6. What is the role of markets/ the market?

2. What are resources of consumers? How do they allocate their resources? (What
are examples for trade-offs made by consumers?)
- Prefer (v): prefer sth to sth: thích cái gì hơn cái gì
- Preferences: sở thích
Consumers have limited incomes. The consumer theory describes how consumers can
best make trade-offs based on their limited resources and preferences. For example, they
may trade off the purchase of more of some goods with the purchase of less of others.
Another example may be trading off current consumption for future consumption.
3. What are resources of workers? How do they allocate their resources? (What are
examples for trade-offs made by workers)
Resources of workers are their time and talent, knowledge, working experience, etc. All
these resources are limited, so they have to make trade-offs. For example, they have to
decide when to enter the workforce (when finishing high schools or graduating from
universities), which job to do, who to work for. They can choose to work for large
companies with job security but limited potential for advancement or for small
companies with more opportunity for advancement but less security. They also have to
decide how many hours for work and how many hours for leisure and so on.
4. What are resources of firms? How do they allocate their resources? (What are
examples for trade-offs made by firms?)
Resources of firms are human resources, financial resources, production capacity,
technology, management ability, reputation (trade mark), brands, and so on. These
resources are scarce so companies have to make trade-offs. They have to decide what to
produce, how to produce and for whom to produce. For example, (lấy ví dụ về 1 công

19
ty cụ thể). Thus, the theory of the firm describes how companies can best make trade-
offs.
5. How are prices important?
Prices influence all trade-offs made by consumers, workers and firms. For example,
when prices of a good increase, consumers tend to buy substitutes even they don’t prefer
them. Workers choose employment depending partly on salaries paid to them. And, a
firm’s decisions such as buying more machinery or employing more workers depend
partly on prices of those machines or salaries paid to those workers.
Suggested vocabulary for answering the questions
- Tend to do sth: có xu hướng làm gì
- Substitute goods/ substitutes: hàng hóa thay thế
If you substitute (v) one thing for another, or if one thing substitutes for another, it takes
the place or performs the function of the other thing.
substitution (sʌbstɪtjuːʃən , US -tuː-): sự thay thế
Word forms: plural substitutions
- To play (have) an important role in + doing sth
- To influence (v) sth :tác động / ảnh hưởng tới cái gì
- Have influence on sth
- Constraints = limits
- Decide to do sth
Sth + depend on + sth
Trade off A with B
Workers have to choose which job to do = have to make choice of employment
Prefer sth to sth: thích cái gì hơn cái gì
Prefer to do sth
Preference
Constraint (v + n)
Determine (v)
Determination (n)

20
 MACROECONOMICS
VOCAB
Tra từ điển những từ sau:
Economic trend Economic growth Balance of payments
Inflation Monetary policy Fiscal policy Government’s revenue
Government spending Promote Objective Ministry of Finance
Money supply regulate overheat slow down respond to
Government borrowing take into account regulation supply demand
Forces determine maximize capacity phenomena
GDP GNP national income interdependent
Complement overlapping issues
Bottoms-up approach top-down approach fundamental sustain

Macroeconomics provides us with a bird’s eye view

of country’s economic landscape. Instead of looking
at behavior of individual businesses and consumers –
called microeconomics – the goal of macroeconomics
is to look at overall economic trends such as
employment levels, economic growth, balance of
payments, inflation and so on.

Inflation is a rise in prices, which can be translated as the decline of

purchasing power over time.
The rate at which purchasing power drops can be reflected in the average price
increase of a basket of selected goods and services over some period of time. The
rise in prices, which is often expressed as a percentage, means that a unit of
currency effectively buys less than it did in prior periods. Inflation can be
contrasted with deflation, which occurs when prices decline and purchasing power
increases.
Look at = study (v) nghiên cứu
Level = rate
An individual (n) – individuals = a person/ persons: cá nhân, cá thể
Individual (adj) + N (số nhiều) = each/ every + N (số it): mỗi cái gì/ cái gì cụ thể
Individual (adj) = specific (adj)
Individual firms = each firm

21
Employment levels = rates – unemployment levels/ rates
A trend is a change or development towards something new or different.
- This is a growing trend.
- ...a trend towards part-time employment. [+ towards]
- ...the downward trend in gasoline prices.
- Full-time job > < part-time job
- Full-time teachers: giáo viên cơ hữu
- Part-time teachers: giáo viên dạy hợp đồng
- Part-time/ full-time students
- Part-time/ full-time workers
What are economic trends?
Economic trends: changes or developments in economies/ economic changes or
developments
Examples for economic trends are changes in employment (unemployment
levels); economic growth; changes in balance of payments; changes in inflation
rate, and so on
A landscape is all the features that are important in a particular situation. Hoàn
cảnh, điều kiện
- June's events completely altered the political landscape.
Alter (v) làm thay đôi – to alter sth
Alternatives (n) các lựa chọn khác.
Economic landscape: tình hình/ hoàn cảnh kinh tế/ bức tranh toàn cảnh về kinh tế
Individual (adj) = specific (adj)
Individual businesses = each business: từng doanh nghiệp cụ thể
Balance of payments: cán cân thanh toán
Exports – imports (có kết quả là giá trị âm hoặc dương – deficit or surplus)
- Britain's balance of payments deficit has improved slightly.
A country's balance of trade (cán cân thương mại) is the difference (chênh lệch), over
a period of time, between the payments it makes to other countries for visible imports
(hang nhập khẩu hữu hình) and the payments it receives from other countries for visible
exports.
- Export and import data are adjusted to bring them in line with the requirements
for compiling the nation's balance of payments.

22
 - The nation has the option of taking the gold out of economy, thus building up a
hoard of gold and retaining its favorable balance of payments.

Pay (v) trả tiền pay (n) tiền lương = salaries/ wages
Pay + money + to sbd/ for sth
Payments (n) khoản thanh toán
Make payments for sth/ to sbd: thực hiện thanh toán cho cái gì
Import (v) – to import sth from swh: nhập khẩu cái gì từ đâu
Imports (n) hàng nhập khẩu
Export sth to swh
Exports (n) hang xuất khẩu
the payments it makes to other countries for imports = the output (outflow) of a
country.
the payments it receives from other countries for exports = the input (inflow) of a
country
A country's balance of trade (cán cân thương mại) is the difference in value, over a
period of time, between the goods it imports and the goods it exports.
- The deficit in Britain's balance of trade in March rose to more than 2100 million
pounds.

Các thang đo quan hệ kinh tế của một nước với các nước khác
 Balance of trade: cán cân thương mại - cân đối giữa tổng giá trị nhập khẩu và
xuất khẩu hàng hóa hữu hình – đây là thang đo hẹp nhất
 Current accounts: cấn cân vãng lai - cộng thêm giá trị xuất khẩu và nhập khẩu một
số dịch vụ vô hình
 Capital accounts: cộng thêm giá trị của hoạt động tài chính
 Balance of payments: cán cân thanh toán – cân đối tổng giá trị của tất cả dòng
tiền vào và dòng tiền ra của một quốc gia trong khoảng thời gian nhất định – đây
là thang đo rộng nhất
Visible > < Invisible services
Foreign aid: viện trợ nước ngoài/ aid packages
Refund (v)
Refundable (adj)
ODA stands for/ is the abbreviation of Official Development Assistance Fund: Quỹ hỗ
trợ phát triển chính thức
FDI stands for Foreign Direct Investment.

23
 Just as the speed of an engine is regulated by its supply of fuel, macroeconomics
is influenced mainly by macroeconomics policies, including monetary policy and fiscal
policy. Monetary policy which controls a nation’s money supply is supervised by each
country’s Central Bank, while fiscal policy which controls a government’s revenue and
spending is in the hand of the Ministry of Finance. The basic objectives of these two
main macroeconomic policies are to promote economic growth and to keep inflation
under control.

3 Major objectives of these two policies are:

+ to promote economic growth (for economic growth promotion)
+ to keep inflation under control/ to control inflation (for inflation control)
+ to reduce unemployment rates/ levels = to create more employment/ more jobs

Monetary policy (main noun) which controls a nation’s money supply (chủ ngữ) is
supervised by each country’s Central Bank
which controls a nation’s money supply – mệnh đề tính ngữ bổ nghĩa cho danh từ đi
trước
Policy (n): a plan of action adopted or pursued by an individual, government, party
(tổ chức), business, etc.
Money (n) tiền tệ
Monetary (adj) means relating to money, especially the total amount of money in a
country.
- Some countries tighten monetary policy to avoid inflation.
- The courts will be asked to place a monetary value on his unfinished career.
Tight (adj)chặt chẽ / tighten (v) thắt chặt
Một số tính từ/ danh từ + en => V
Ví dụ:
- wide (adj) – widen (v) mở rộng/
- strong (adj) – strength (n) – strengthen (v): đẩy mạnh, củng cố, tăng cường
- long – length – lengthen (v): kéo dài
- broad (adj) – broaden (v): mở rộng
Monetary policy means a plan of action (decisions) relating to the total amount of
money in a country (money supply – lượng cung tiền) which is adopted or pursued
by its government.

24
Fiscal policy (n) chính sách tài chính
Two major macroeconomics policies are fiscal policy and monetary policy.
If people promote (v) something, they help or encourage it to happen, increase, or
spread.
- You don't have to sacrifice (hy sinh) environmental protection to promote
economic growth.
CSR: Corporate Social Responsibilities (trách nhiệm xã hội của doanh nghiệp) +
sustainable development (phát triển bền vững)
Your objective (n) is what you are trying to achieve.
- Our main objective was the recovery of the child safe and well.
- His objective was to play golf and win.
Objective (adj) information is based on facts.
N (danh từ) + ive = Adj (tính từ)
Ví dụ:
- Information – informative
- Nation – native
- Expense(s) – expensive
(Bổ sung thêm các ví dụ)
Object (n) khách thể - objective (adj) khách quan
Subject (n) chủ thể - subjective (Adj) chủ quan
- He had no objective evidence that anything extraordinary was happening.
The money supply is the total amount of money in a country's economy at any one
time.

(Tìm hiểu các thang đo lượng cung tiền – M1, M2)

When someone finances (cấp vốn) something such as a project or a purchase, they
provide the money that is needed to pay for them.
- The fund has been used largely to finance the construction of federal
prisons. [VERB noun]
- Government expenditure is financed by taxation and by borrowing. [be
VERB-ed + by]
- They believed that controlling the money supply would reduce inflation.
take into account = to take into consideration = consider sth

25
consider (v) xem xét
If you supervise an activity or a person, you make sure that the activity is done correctly
or that the person is doing a task or behaving correctly.
- University teachers have refused to supervise students' examinations. [VERB
noun]
- He supervised and trained more than 400 volunteers.
Revenue is money that a company, organization, or government receives from people.
- ...a boom year at the cinema, with record advertising revenue and the highest
ticket sales since 1980.
- One study said the government would gain about $12 billion in tax revenues over
five years.
In Britain and some other countries, a minister (bộ trưởng) is a person who is in charge
of a particular government department.
- When the government had come to power, he had been named Minister of
Culture. [+ of]
- ... he newly appointed defence minister.
Ministry of Finance: Bộ tài chính
Minister of Finance
The bank governor: thống đốc ngân hàng

Just as a driver uses the accelerator to speed up or slow down a vehicle, central
banks control the economy by increasing or decreasing the money supply. By carefully
regulating the supply of money to fuel economic growth, a central bank works to keep
the economy from overheating or slowing down too quickly.
Monetary policy is essentially a guessing game. There is no one statistic to tell us
how fast an economy is growing, and there is nothing that tell us how quickly the
economy will respond to changes that may take months or years to implement. Central
banks try to keep one eye on unemployment, resulting from economic slowdowns and
one eye on inflation resulting from an overheated economy.

Statistics (số liệu thống kê) are facts which are obtained from analyzing information
expressed in numbers, for example information about the number of times that
something happens.
- Official statistics show real wages declining by 24%.
- There are no reliable statistics for the number of deaths in the battle.

26
When you respond to (phản ứng/ phản hồi/ đáp trả) something that is done or said, you
react to it by doing or saying something yourself.
- They are likely to respond positively to the President's request for aid. [VERB +
to]
- The Belgian Minister of Foreign Affairs responded that the protection of refugees
was a matter for an international organization.
If you implement (v) – thực hiện something such as a plan, you ensure that what has
been planned is done.
- The government promised to implement a new system to control financial loan
institutions. [VERB noun]
- If such measures were implemented, the problems could be overcome in twelve
months.
If something results from a particular event or action, it is caused by (gây ra bởi) that
event or action.
- Many hair problems result from what you eat. [VERB + from]

The economy at large (mostly) can also be controlled by regulating fiscal policy,
government revenue and spending. Taxation and government spending greatly influence
a country’s economic growth. Just as a family’s economic health is influenced by a
parents’ earning and spending habits, a nation’s economic health is influenced by
governmental fiscal policies, such as taxation, spending and government borrowing.

Ghi chú:
Trạng ngữ: giới từ + danh từ
Ví dụ: in part (partly), at large (largely) = mostly,
In time, on time, by heart, by chance, by mistake, ….

What's the difference between macroeconomics and microeconomics?

Microeconomics is generally the study of individuals and business decisions,
macroeconomics looks at higher up country and government decisions. Macroeconomics
and microeconomics, and their wide array of underlying concepts, have been the subject
of a great deal of writings (các nghiên cứu). The field of study is vast; here is a brief
summary of what each covers:
Microeconomics is the study of decisions that people (individuals = consumers +
workers) and businesses make regarding the allocation of resources and prices of goods
and services. This means also taking into account taxes and regulations created by
governments (do chính phủ ban hành). Microeconomics focuses on supply and demand

27
and other forces (động lực/ yếu tố tác động) that determine the price levels seen in the
economy. For example, microeconomics would look at how a specific company could
maximize it's production and capacity so it could lower prices and better compete in its
industry.
Macroeconomics, on the other hand, is the field of economics that studies the
behavior of the economy as a whole (hành vi của toàn nền kinh tế - the self-regulation of
the market- sự tự điều tiết của thị trường) and not just on specific companies, but entire
industries and economies. This looks at economy-wide phenomena, such as Gross
National Product (GNP)/ GDP – Gross Domestic Product and how it is affected by
changes in unemployment, national income, rate of growth, and price levels. For
example, macroeconomics would look at how an increase/decrease in net exports would
affect a nation's capital account or how GDP would be affected by unemployment rate.
While these two studies of economics appear to be different, they are actually
interdependent (phụ thuộc lẫn nhau) and complement (bổ sung cho nhau) one another
since there are many overlapping issues (vấn đề đan xen) between the two fields. For
example, increased inflation (macro effect) would cause the price of raw materials to
increase for companies and in turn affect the end product's price charged to the public.

Read the reading 2 thoroughly and answer the following questions

Inflation is a general increase in the prices of goods and services in a country.
An increase (n) + in sth: khoản tăng lên ở cái gì
- ...rising unemployment and high inflation.
- ...an inflation rate of only 2.2%.
To regulate (v) an activity or process means to control it, especially by means of
rules.
- Serious reform is needed to improve institutions that regulate competition.
- As we get older the temperature-regulating mechanisms in the body become
less efficient.
To regulate an activity or process means to control it, especially by means of rules.
- Serious reform is needed to improve institutions that regulate competition.
- As we get older the temperature-regulating mechanisms in the body become
less efficient
Regulations are rules made by a government or other authority in order to control
the way something is done or the way people behave.
- Employers are using the new regulations to force out people over 65.

28
 - Under pressure from the American government, Fiat and other
manufacturers obeyed the new safety regulations.
Supply (n) is the quantity of goods and services that can be made available for
people to buy.
- Prices change according to supply and demand.
Demand (n): the possible quantities of a commodity that consumers are willing
and able to purchase at possible prices
Quantity demanded refers to (để chỉ) a particular quantity of a good or service
that buyers are willing and able to buy at a particular price.

Questions for details:

1. What are two major macroeconomic policies?
2. Who supervises monetary policy?
3. What does monetary policy control?
4. Who supervises fiscal policy?
5. What does fiscal policy control?
6. What are the main objectives of macroeconomic policies?
To overheat (v)
If a country's economy overheats or if conditions overheat it, it grows so rapidly
that inflation and interest rates rise very quickly.
- The private sector is increasing its spending so sharply that the economy is
overheating.
Slow down
To keep sth from doing sth: giữ cho cái gì tránh khỏi cái gì
To keep the economy from overheating or slowing down too quickly
Questions for topics:
1. What does economics study?
Economics studies how people choose to use limited resources to produce goods and
services in order to best satisfy human demand.
Resources can be divided into three main types of natural resources, human resources
and capital. All resources are limited so consumers, workers and firms have to make
trade-offs.
Economists study economic issues via 2 different avenues: microeconomics and
macroeconomics.

29
2. What does microeconomics study?
Microeconomics studies how consumers, workers, and firms can best use their limited
resources/ can use their limited resources the most efficiently/ can make the most of
their limited resources in order to best satisfy their demand.
Microeconomics study how consumers, workers, and firms can best use their limited
resources to produce goods and services (wealth) in order to best satisfy their demand.
Thus, microeconomics study behavior of each consumer, worker, and firm.
3. What does macroeconomics study?
Macroeconomics study behavior of ……?
Kinh tế vĩ mô nghiên cứu mối quan hệ tương tác giữa tất cả các yếu tố kinh tế trong
phạm vi nền kinh tế và kinh tế quốc tế.
Macroeconomics studies interactions among all different factors within a country’s
economy or in the international market place/ international economy. Thus,
macroeconomics study overall economic trends such as economic growth, employment
rate, balance of payments, inflation and so on.
4. What are differences between microeconomics and macroeconomics?
Microeconomics Macroeconomics
definition
Theories/ policies - theory of the firms - the role of the governments
- theory of workers - major macroeconomic policies:
- the consumer theories fiscal policy and monetary
(trade-offs) policy.
The role of prices/ markets - Objectives of macroeconomics
- Objectives of microeconomics

Glossary (Từ vựng)

fiscal policy:
economic policies that involve government spending and taxes
macroeconomics:
the branch of economics that focuses on broad issues such as growth, unemployment,
inflation, and trade balance
microeconomics:
the branch of economics that focuses on actions of particular agents within the
economy, like households, workers, and businesses
monetary policy:
policy that involves altering the level of interest rates, the availability of credit in the
economy, and the extent of borrowing

30