انجليزية

Economic English Course Bachelor Program: S5
Mr. DAOUD SADALLAH Contact: rudavid84@gmail.com
Topic 1: Introduction to Economics
Economics may appear to be the study of complicated tables and charts, statistics
and numbers, but, more specifically, it is the study of what constitutes rational
human behavior to fulfill needs and wants. Ex, you face the problem of having
only limited resources with which to fulfill your wants and needs, as a result, you
must make certain choices with your money. You'll probably spend part of your
money on rent, electricity and food. Economists are interested in the choices you
make, and inquire into why, they would want to know whether you would still buy
a cigarettes if prices increased by $2 per pack. They try to understand how both
individuals and nations behave in response to certain material constraint.
We can say, therefore, that economics, often referred to a study of certain aspects
of society. Adam Smith (1723 - 1790), the "father of modern economics" and
author of the famous book "An Inquiry into the Nature and Causes of the Wealth of
Nations", create the discipline of economics by trying to understand why some
nations prospered while others lagged behind in poverty. Others after him also
explored how a nation's allocation of resources affects its wealth.
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To study these things, economics makes the assumption that human beings will
aim to fulfill their self-interests. It also assumes that individuals are rational in their
efforts to fulfill their unlimited wants and needs. Economics, therefore, is a social
science, which examines people behaving according to their self-interests.
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Topic 2: Market in Economics
A market is one of the many varieties of systems, institutions, procedures, social
relations and infrastructures whereby parties engage in exchange. While parties
may exchange goods and services by barter, most markets rely on sellers offering
their goods or services (including labor) in exchange for money from buyers. It can
be said that a market is the process by which the prices of goods and services are
established. Markets facilitate trade and enables the distribution and allocation of
resources in a society. Markets allow any trade-able item to be evaluated
and priced. A market emerges more by human interaction in order to enable the
exchange of rights (ownership) of services and goods.
Markets can differ by products (goods, services) or factors (labour and capital)
sold, product differentiation, place in which exchanges are carried, buyers targeted,
duration, selling process, government regulation, taxes, subsidies, legality of
exchange, liquidity, size, geographic extension. The geographic boundaries of a
market may vary considerably, for example the food market in a single building,
the real estate market in a local city, the consumer market in an entire country, or
the international trade where the same rules apply on everyone. Markets can also
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be worldwide, for example the global diamond trade. National economies can be
classified, for example as developed markets or developing markets.
In mainstream economics, the concept of a market is any structure that allows
buyers and sellers to exchange any type of goods, services and information. The
exchange of goods or services, with or without money is a transaction. Market
participants consist of all the buyers and sellers of a good who influence its price,
which is a major topic of the economics study and has given rise to several theories
and models concerning the basic market forces of supply and demand. A major
topic of debate is how much a given market can be considered to be a "free
market", that is free from government intervention.
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Topic 3: Market equilibrium: Demand and supply
Supply and demand is perhaps one of the most fundamental concepts of economics
and it is the backbone of a market economy. Demand refers to how much
(quantity) of a product or service is desired by buyers. The quantity demanded is
the amount of a product people are willing to buy at a certain price.
Supply represents how much the market can offer. The quantity supplied refers to
the amount of a certain goods producers are willing to supply when receiving a
certain price.
The relationship between demand and supply underlie the forces behind the
allocation of resources. In market economy theories, demand and supply theory
will allocate resources in the most efficient way possible.
The equilibrium price is the price of a goods or service when the supply of it is
equal to the demand for it in the market. If a market is at equilibrium, the price will
not change unless an external factor changes the supply or demand, which results
in a disruption of the equilibrium.
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Topic 4: Economic consumption and Income
Consumption is a major concept in economics and is also studied by many other
social sciences. Economists are particularly interested in the relationship between
consumption and income, and therefore in economics the consumption function
plays a major role.
Different schools of economists define production and consumption differently.
According to mainstream economists, only the final purchase of goods and services
by individuals constitutes consumption, while other types of expenditure - in
particular, investment, intermediate consumption and government spending - are
placed in separate categories. Other economists define consumption much more
broadly, as the aggregate of all economic activity that does not entail, production
and marketing of goods and services.
Consumption is the process in which the substance of a thing is completely
destroyed, used up, or incorporated or transformed into something else. For
households and individuals, "income is the sum of all the wages, salaries, profits,
interests payments, rents, and other forms of earnings received in a given period of
time. In economics, "income factor" is the return accruing for a person, or a nation,
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derived from the "factors of production": rental income, wages generated by labor,
the interest created by capital, and profits from entrepreneurial ventures.
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Topic 5: Economic Production
Production is a process of combining various material inputs and immaterial inputs
(plans, know-how) in order to make something for consumption (the output). It is
the act of creating output (goods or service) which has value and contributes to
the utility of individuals.
Economic well-being is created in a production process, meaning all economic
activities that aim directly or indirectly to satisfy human needs. In production there
are two features which explain increasing economic well-being. They are
improving quality-price-ratio of commodities and increasing incomes from
growing and market production efficiency.
The most important forms of production are:
 market production
 public production
 household production
In order to understand the origin of the economic well-being we must understand
these three production processes. All of them produce commodities which have
value and contribute to well-being of individuals.
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The satisfaction of needs originates from the use of the commodities which are
produced. The need satisfaction increases when the quality-price-ratio of the
commodities improves and more satisfaction is achieved at less cost. Improving
the quality-price-ratio of commodities is to a producer an essential way to enhance
the production performance.
Economic well-being also increases due to the growth of incomes that are gained
from the growing and more efficient market production. Market production is the
only one production form which creates and distributes incomes to stakeholders.
Public production and household production are financed by the incomes generated
in market production. Thus market production has a double role in creating well-
being, because of this double role market production is the “key role” of economic
well-being.
Comprehensive questions:
Q1: give a definition of the production?
Q2: What are the different types of economic production?
Q3: What we mean about economic well-being?
Q4: How does the Eco well-being measured? Give two?
Q5: Why market production is very important?
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In a general sense, market production refers to the production of a product or
service which is intended for sale at a money-price in a market. The product or
service in principle has to be tradable for money.
However, in national accounts the term has a more specific meaning. These
are non-commercial or partly commercial organizations, which can be mainly self-
funded, but not for profit, or mainly funded by sources other than their own
revenue.
Non-market production, by contrast, includes producing units which provide most
of their output to others either free of charge, or at prices which are "not
economically significant" - for example, government institutions, households, or
non-profit institutions. If prices are charged for services supplied, these prices
mostly do not change in response to fluctuations in supply or demand (as in the
case of administered prices).
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Topic 6: Scarcity and Shortage
Scarcity is the fundamental economic problem of having seemingly unlimited
human wants in a world of limited resources. It states that society has insufficient
productive resources to fulfill all human wants and needs. For something to be
scarce, it has to be hard to obtain, hard to create, or both. Simply put, the
production cost of something determines if it is scarce or not. Additionally,
scarcity implies that not all of society's goals can be pursued at the same
time. Lionel Robbins defined economics as "the science which studies human
behavior as a relationship between ends and scarce means which have alternative
uses."
Economic shortage is a disparity between the amount demanded for a product or
service and the amount supplied in a market. Specifically, a shortage occurs when
there is excess demand; therefore, it is the opposite of a surplus.
Economic shortages are related to price - when the price of an item is set below
the equilibrium rate determined by supply and demand, there will be a shortage. In
most cases, a shortage will compel firms to increase the price of a product until it
reaches market equilibrium.
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In common use, the term "shortage" may refer to a situation where most people are
unable to find a desired good at an affordable price.
Shortage of a certain item does not necessarily mean that the item is not being
produced; rather, it means that the amount of the good demanded exceeds the
amount supplied at a given price. This may be caused by a government enforced
low price which encourages consumers to demand a higher amount than is
supplied.
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Topic 7: Economic Agents and Management
In economics, an agent is an actor and decision maker . Typically, every agent
makes decisions by solving a well- or ill-defined optimization/choice problem.
For example, buyers and sellers are two common types of agents in partial
equilibrium models of a single market. Macroeconomic models, often
distinguish households, firms, and governments or central banks as the main types
of agents in the economy. Each of these agents may play multiple roles in the
economy; households, for example, might act as consumers, as workers in the
model. Some macroeconomic models distinguish even more types of agents, such
as workers and shoppers or commercial banks.
The concept of an agent may be broadly interpreted to be any persistent individual,
social, biological, or physical entity interacting with other such entities in the
context of economic system agents.
Management defined as a discipline, management comprises the interlocking
functions of formulating corporate policy and organizing, planning, controlling,
and directing a firm's resources to achieve a policy's objectives
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Management in business and organizations is the function that coordinates the
efforts of people to accomplish goals and objectives using available resources
efficiently and effectively. Management comprises planning, organizing, staffing,
leading or directing, and controlling an organization to accomplish the
goal. Resourcing encompasses the deployment and manipulation of human
resources, financial resources, technological resources, and natural resources.
Management is also an academic discipline, a social science whose objective is to
study social organizations.
Management involves identifying the mission, objective, procedures, rules and the
manipulation of the human capital of an enterprise to contribute to the success of
the enterprise. Management does not need to be seen from enterprise point of view
alone, because management is an essential function to improve one's life and
relationships. From this perspective, Henri Fayol (1841–1925) considers
management to consist of six functions:
1. Forecasting
2. Planning
3. Organizing
4. Commanding
5. Coordinating
6. Controlling
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Forecasting: Risk and uncertainty are central to forecasting and prediction; it is

generally considered good practice to indicate the degree of uncertainty attaching
to forecasts. In any case, the data must be up to date in order for the forecast to be
as accurate as possible.
Organizing: Helps to achieve organizational goal, Optimum use of resources,

Facilitates growth and diversification and Human treatment of employees.
Commanding: A command in military terminology is an organizational unit for

which the individual in Military command is responsible. A Commander will
normally be specifically appointed to the role in order to give orders to the unity.
Coordinating: integration of activities, responsibilities, and command

and control structures to ensure that the resources of an organization are used most
efficiently in pursuit of the specified objectives.
Controlling: It is an important function because it helps to check the errors and to
take the corrective action so that deviation from standards are minimized and
stated goals of the organization are achieved in a desired manner.
Q1: Give a definition of the management?
Q2: What types of functions the management includes?
Q3: What are the different resourcing used by management disciplinary?
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Topic 8: Financial Management - Meaning, Objectives and Functions
Definition of Financial Management
Financial Management means planning, organizing, directing and controlling the
financial activities such as procurement and utilization of funds of the enterprise. It
means applying general management principles to financial resources of the
enterprise.
Scope/Elements
1. Investment decisions includes investment in fixed assets (called as capital
budgeting). Investment in current assets are also a part of investment
decisions called as working capital decisions.
2. Financial decisions - They relate to the raising of finance from various
resources which will depend upon decision on type of source, period of
financing, cost of financing and the returns thereby.
3. Dividend decision - The finance manager has to take decision with regards
to the net profit distribution. Net profits are generally divided into two:
a. Dividend for shareholders- Dividend and the rate of it has to be
decided.
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b. Retained profits- Amount of retained profits has to be finalized which
will depend upon expansion and diversification plans of the
enterprise.
Objectives of Financial Management
The financial management is generally concerned with procurement, allocation and
control of financial resources of a concern. The objectives can be-
1. To ensure regular and adequate supply of funds to the concern.
2. To ensure adequate returns to the shareholders which will depend upon the
earning capacity, market price of the share, expectations of the shareholders.
3. To ensure optimum funds utilization. Once the funds are procured, they
should be utilized in maximum possible way at least cost.
4. To ensure safety on investment, i.e, funds should be invested in safe
ventures so that adequate rate of return can be achieved.
5. To plan a sound capital structure-There should be sound and fair
composition of capital so that a balance is maintained between debt and
equity capital.
Functions of Financial Management
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1. Estimation of capital requirements: A finance manager has to make
estimation with regards to capital requirements of the company. This will
depend upon expected costs and profits and future programmes and policies
of a concern. Estimations have to be made in an adequate manner which
increases earning capacity of enterprise.
2. Determination of capital composition: Once the estimation have been made,
the capital structure have to be decided. This involves short- term and long-
term debt equity analysis. This will depend upon the proportion of equity
capital a company is possessing and additional funds which have to be raised
from outside parties.
3. Choice of sources of funds: For additional funds to be procured, a company
has many choices like-
a. Issue of shares and debentures
b. Loans to be taken from banks and financial institutions
c. Public deposits to be drawn like in form of bonds.
Choice of factor will depend on relative merits and demerits of each source
and period of financing.
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4. Investment of funds: The finance manager has to decide to allocate funds
into profitable ventures so that there is safety on investment and regular
returns is possible.
5. Disposal of surplus: The net profits decision have to be made by the finance
manager. This can be done in two ways:
a. Dividend declaration - It includes identifying the rate of dividends and
other benefits like bonus.
b. Retained profits - The volume has to be decided which will depend
upon expansional, innovational, diversification plans of the company.
6. Management of cash: Finance manager has to make decisions with regards
to cash management. Cash is required for many purposes like payment of
wages and salaries, payment of electricity and water bills, payment to
creditors, meeting current liabilities, maintenance of enough stock, purchase
of raw materials, etc.
Financial controls: The finance manager has not only to plan, procure and utilize
the funds but he also has to exercise control over finances. This can be done
through many techniques like ratio analysis, financial forecasting, cost and profit
control, etc.
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Economic English Course Bachelor Program: S5

Mr. DAOUD SADALLAH Contact: rudavid84@gmail.com

Topic 1: Introduction to Economics

individuals and nations behave in response to certain material constraint.

Nations", create the discipline of economics by trying to understand why some

explored how a nation's allocation of resources affects its wealth.

science, which examines people behaving according to their self-interests.

Topic 2: Market in Economics

A market is one of the many varieties of systems, institutions, procedures, social

relations and infrastructures whereby parties engage in exchange. While parties

resources in a society. Markets allow any trade-able item to be evaluated

exchange of rights (ownership) of services and goods.

duration, selling process, government regulation, taxes, subsidies, legality of

exchange, liquidity, size, geographic extension. The geographic boundaries of a

classified, for example as developed markets or developing markets.

In mainstream economics, the concept of a market is any structure that allows

exchange of goods or services, with or without money is a transaction. Market

topic of debate is how much a given market can be considered to be a "free

market", that is free from government intervention.

Topic 3: Market equilibrium: Demand and supply

and it is the backbone of a market economy. Demand refers to how much

(quantity) of a product or service is desired by buyers. The quantity demanded is

the amount of a product people are willing to buy at a certain price.

allocation of resources. In market economy theories, demand and supply theory

will allocate resources in the most efficient way possible.

in a disruption of the equilibrium.

Topic 4: Economic consumption and Income

Consumption is a major concept in economics and is also studied by many other

social sciences. Economists are particularly interested in the relationship between

consumption and income, and therefore in economics the consumption function

plays a major role.

Different schools of economists define production and consumption differently.

by individuals constitutes consumption, while other types of expenditure - in

particular, investment, intermediate consumption and government spending - are

placed in separate categories. Other economists define consumption much more

and marketing of goods and services.

Consumption is the process in which the substance of a thing is completely

destroyed, used up, or incorporated or transformed into something else. For

the interest created by capital, and profits from entrepreneurial ventures.

Topic 5: Economic Production

Production is a process of combining various material inputs and immaterial inputs

(plans, know-how) in order to make something for consumption (the output). It is

the utility of individuals.

Economic well-being is created in a production process, meaning all economic

improving quality-price-ratio of commodities and increasing incomes from

growing and market production efficiency.

The most important forms of production are:

In order to understand the origin of the economic well-being we must understand

value and contribute to well-being of individuals.

produced. The need satisfaction increases when the quality-price-ratio of the

commodities improves and more satisfaction is achieved at less cost. Improving

the quality-price-ratio of commodities is to a producer an essential way to enhance

the production performance.

Q1: give a definition of the production?

Q2: What are the different types of economic production?

Q3: What we mean about economic well-being?

Q4: How does the Eco well-being measured? Give two?

Q5: Why market production is very important?

In a general sense, market production refers to the production of a product or

service which is intended for sale at a money-price in a market. The product or

service in principle has to be tradable for money.

are non-commercial or partly commercial organizations, which can be mainly self-

Non-market production, by contrast, includes producing units which provide most

economically significant" - for example, government institutions, households, or