Midtest English II

Text I
Economists study households, business companies, their home governments (the state) and foreign countries as subjects. Households offer their production factors to companies. This includes work, land, capital (machines, buildings) and information. They get income which they use to buy or ‘consume’ goods. Business companies produce and sell goods and buy production factors from the households and other companies. The state is divided in institutions and organizations. For example the United States of America consists of 50 states, where every state has his own area of responsibility. The state distributes the earnings from the business companies and households. These payments are called transfer payments. Public goods like streets or university education should be available for everyone. The last subject is foreign countries this includes all households, business companies and state institutions, which are not based in the mother land. They demand and supply goods from abroad.
The objects in economic study are consumer goods, capital goods and factors of production. Consumer goods are classified in usage goods for example toilet paper, in purpose goods for example a car and in services for example a cleaning lady. Capital goods are goods, which are necessary for producing other goods. Examples for these are buildings, equipment and machines. Factors of production are work, ground, capital, information and environment.
I. Answer the questions based on the text
1. How do the economists get their income?
2. What do economists study?
3. What is called transfer payment?

II. Write five expressions to ask and talk about the place.
III. Write three expressions for giving suggestion.
IV. Make one paragraph about yesterday activities
V. Make one paragraph about daily activities


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