Unit 1

What is economics about?

 Word web: economy

-Y
-ICS
ECONOM -ISE
-IC -AL -LY
-IST

How many words can you find in this diagram?

 Word web: economy
• 7 words!
• nouns
• economy
• economics
• economist

• verbs
• economise

• adjectives
• economic
• economical

• adverbs
• economically
Word web: economy
• E'CONOMY /ɪˈkɒnəmi/
• the system by which a country’s goods and services are produced and used (privreda)
• a country considered in this way (ekonomija) – e.g. Serbian economy
• the careful use of money, goods, etc. so that nothing is wasted (štednja, ušteda)

• ECO'NOMICS /ˌiːkəˈnɒmɪks/ or /ˌekəˈnɒmɪks/

• the study of the way in which wealth is produced and used (science)

• E'CONOMIST /ɪˈkɒnəmɪst/
• someone who studies/is an expert in the way in which wealth is produced and used in
an area
 
Word web: economy
• ECO'NOMIC /ˌiːkəˈnɒmɪk/ or /ˌekəˈnɒmɪk/
• related to the economy (ekonomski)

• (to) E'CONOMISE /ɪˈkɒnəmaɪz/ also spellt ECONOMIZE

• to save money (štedeti, biti ekonomičan)
• ECO'NOMICAL /ˌiːkəˈnɒmɪk(ə)l/ or /ˌekəˈnɒmɪk(ə)l/
• careful not to waste any money or resources (ekonomičan, štedljiv)
• ECO'NOMICALLY /ˌiːkəˈnɒmɪkli/ or /ˌekəˈnɒmɪkli/
• using little money, time, resources (štedljivo, ekonomično)
 Collocations: Adjectives + ECONOMY
Booming economy creates
many opportunities for boomin
investors. vibrant It is one of the most
g dynamic economies
in the world.
Every government
attempts to maintain a
healthy dynamic
stable and healthy
economy.

Americans say strong
economy is only
strong ECONOMY stable helping the rich.
 Collocations: Adjectives + ECONOMY
They are trying to rebuild
The government is taking
the country’s fragile
action to revive the
economy. depressed sluggish weak/ailing economy.

ailing fragile
The economy has been
Cuts in taxes will not
sluggish due to the
help much the country’s
coronavirus pandemic.
stagnant economy.

stagnan
weak ECONOMY
t
 Collocations: Verbs + ECONOMY
– to make an economy stronger
How to strengthen the The Government must
world economy after the spend more to revive the
Corona crisis? revive stimulate economy.

develop strengthen
More money is
needed to boost the
economy.

boost ECONOMY expand

 Collocations: Verbs + ECONOMY
– to make an economy worse

harm The COVID-19 pandemic

has crippled the country’s
He warned that the
economy.
action would devastate
the economy.
devastate cripple

damage ECONOMY undermine

Collocations: ECONOMY + Verbs

develops/expands/grows/picks up (becomes
more successful)
The economy has grown by 2% this year.
booms (becomes very successful)
THE ECONOMY The economy is booming due to effective
policies.

rebounds/recovers (improves after a

difficult period of time)
Since the most recent downturn the
economy has rebounded.
Collocations: ECONOMY + Verbs
slows down (starts to move more slowly)
The world economy is slowing down faster
than expected.
shrinks (becomes smaller in amount or value)
The economy is expected to shrink
considerably.
THE ECONOMY declines (becomes less profitable)
The global economy has declined sharply.
collapses (suddenly becomes too weak to
continue)
Lots of people lose their jobs when the economy
collapses.
Types of ECONOMY
• the domestic / local/ national
• the global / world
• the Serbian / British /American
• a/an developing / emerging
• an industrial ECONOMY
• a service
• a market /free-market
• the digital
• the gig
(based on temporary, flexible or freelance jobs)
• the black / shadow
(business activity that is illegal, allows people to avoid paying taxes)
Additional expressions with ECONOMY
• make economies – do something in order to spend less money
• Sometimes companies make economies on service quality.
• false economy – something seems to be a good way of saving money
but is not
• Going abroad without medical insurance is a false economy if you fall
ill.
• economy-size / pack – when large packs of goods are cheaper than
normal-sized packs
• I bought an economy-size bottle of shampoo.
Economics vs. economy
Do not confuse ECONOMY ( a country’s economic system) with ECONOMICS (the
study of how money is produced and used)

We say:
• Petar is studying ECONOMICS.
• Petar is studying at the Faculty of ECONOMICS in Belgrade.

We don’t say:
• Petar is studying ECONOMY.
• Petar is studying at the Faculty of ECONOMY in Belgrade.

• an economics professor / student /class

 ECONOMIC or ECONOMICAL
Use economic to describe things that are related to the economy of a country and
how well it is performing:
✗ the government’s economical policy
✓ the government’s economic policy

✗ a serious economical crisis
✓ a serious economic crisis

Use economical to describe methods, products, machines etc. that are not

expensive or do not waste money or other resources:
✗ They want people to buy more economic cars.
✓ They want people to buy more economical cars.

✗ We have a very economic heating system, so our bills are not high.
✓ We have a very economical heating system, so our bills are not high.
• to be economical with the truth?

• used humorously to say that someone is not telling the whole truth/

avoiding stating the true facts about a situation.
• (= is lying)

He may be economical with the truth

occasionally, but clearly he is not a liar.
More examples of economic + noun

growth/development problems
slowdown/downturn activity
ECONOMIC
recovery indicator

recession performance

reform sanctions
crisis policy
Collocations: ECONOMICALLY + Adjective

• economically developed/advanced (=modern, with many different

types of industry)
• the economically developed countries of Western Europe
• economically successful/powerful
• an economically successful area
• economically powerful countries like the US
• economically depressed (=with not enough business activity, jobs etc.)
• Economically depressed areas will receive extra EU funding.
• economically disadvantaged (=poor)
• Many of our employees are from economically disadvantaged backgrounds.
Collocations: ECONOMICALLY + Adjective

• economically viable/feasible (=likely to be or remain financially

successful) – isplativ, izvodljiv
• Most of the coal mines in the area are no longer economically viable.
• economically active (=with a job, and so earning money) opposite:
• A lot of elderly women are not economically active. INactive
• economically independent (=not depending on other people for money)
• Societies change when women become economically independent.
• economically dependent on (=depending on someone or something for
money)
• The country is still economically dependent on agriculture.