Đề cương ôn thi tiếng anh chuyên ngành kinh tế phần 2

Unit 1 Economics 1 Definitions Economics is the study of how people choose to use resources Economics is the study of the production and consumption of goods and the transfer Resources include the tim.

Unit 1: Economics

1 Definitions

- Economics is the study of how people choose to use resources

- Economics is the study of the production and consumption of goods and the transfer

- Resources include the time and talent people, land, building, equipment and so onand the knowledge of how to combine them

+ Resources is limited

2 2 types of economics

- Microeconomics : focuses on the actions of individual and industries, like the

dynamics between buyers and sellers, borrowers and lenders

- Macroeconomics: analyzing the economic activity of an entire country or the

self He believed that government should not restrict or interfere at maxium

Why: They could regulate themselves and, thereby, produce wealth at maxium efficiency

Marxism theory - State that capitalism will eventually fail

- He believed that such exploitation leads to social unrest and class conflict

- He theorized laborers should own and control the means

becomes overly active.

- This theory strongly influences U.S economic policy today

4 Role of economics

- Economics shape the world

- Through economic, people and countries become wealthy

- Styding economics can help one understand human thought and behavior

Questions:

1 What does economics study?

2 What are some main idea’s of Adam Swith’s theory?

3 What are some main idea’s of Mark’s theory?

4 What are some main idea’s of Keyness’s theory?

Unit 2: Economics systems

1 Free market economy

-Free market system is an economics system in which the market is regulate by the

law of supply and demand.

-Business firms compete freely

-No direct government intervention

-Government influence the economy though its fiscal and budgetary policies

2 Planned economy

Planed economy is an economic system where by the structure of the market is

deliberately planned by the state

-There is no real competition

- Production and consumption quotas are fixed before hand.

- Direct government intervention

3 Mixed economy

Mixed economy is an economics system in which some goods and service are

produced by the government and some by private enterprise

- It lies between the market economy and the planned economy

- Most economics now are mixed

Questions:

1 What is a market economy?

2 What is a planned economy?

3 What is a mixed economy?

4 What are differences between a market economy and a planned economy?

+ The market is supposed to be regulate

by the law of supply and demand

+ Free competition

+ No direct government intervention

+ Is deliberately planned by the state

+ No real competition+ Direct government intervention

Unit 3: Microeconomics

Microeconomics is a branch of economics that deals with the how consumers and

firms behave while making decisions on the allocation of scarce resources

Limits: + Limited incomes

+ Limited number of hour in a week

+ Limited budget

Allocation decisions:

+ In a planned economy: Allocation decisions are made mostly by the

government

+ In modern market economics: consumers, workers, and firms have much more flexibility and choice

1 Making optimal trade-off

* Consumer theory describes how consumer, based on their preferences maximize

their well-being by making some trade-off

-Trading-off the purchase of more of some goods with the purchase of less of others

- Trading- off current consumption for future consumption

* Works

- Trading-off working now with continued education

- Trading-off their choice of employment (working for small companies or large corporations)

- Trading-off labor for leisure

* Firms

- Trading-off producing some kinds of products instead of the orthers

- Trading-off hiring more workers, building new factories or buy new machines.Theory of firm describes how these trade-off can be best made by firms

2 The role of price

- All of the trade-offs made by consumers, workers, and firm are based on the prices

- How are prices determined?

+ In a centrally planned economy, prices are set by the government

+ In a market economy, prices are determined by the interration of consumers, workers, and firms.

3 The contral role of markets.

The interaction of consumers, workers, and firms in market detemine the price of agood

Questions:

1 What does microeconomics study?

2 What are trade-off made by consumers?

3 What are trade-off made by workers?

4 What are trade-off made by firms?

Unit 4: Macroeconomics

Monetary policy: chính sách tiền tệ

Fiscal policy: chính sách tài chính

Economic landscape: bối cảnh nền kinh tế

Supervise : giám sát, quản lý

Open market operation: hoạt động thị trường mở

The ministry of finance : bộ Tài chính

Government spending : chi tiêu của chính phủ

1 Definition

Macroeconomics is a branch of economics that studies the economic activity of an

entire country and economy wide phenomena

2 The goal of macroeconomics

Economic trends Bird’s eyes

Look at Employment levels Provide view of country’s

Marco → Economic growth → economic landscape Inflation

And so on

3 Two main macroeconomic policies

- Control a nation’s money supply

- Is supervised by each country’s central

bank

- Main tools are reserve requirement

discount rate, and open market

The basic objectives of these 2 main macroeconomis policies are:

- To promote economic growth: thúc đẩy tăng trưởng kinh tế

- To keep inflation under control: giữ lạm phát dưới tầm kiểm soát

4 Differences between Micro and Macro

- Is the study of individual and business

decisions

- Focus on supply and demand and other

forces that determine the price

- Take a bottoms-up approach: Tiếp cận

- Take a top-down approach: Tiếp cận

từ trên xuống

5 Relationship between Micro & Macro

- They are interdependent and complement one another.

- They provide fundamental tools for any finance professional

Questions

1 What does macroeconomics sudy?

2 What are difference between micro and macro

Unit 5: Demand and supply

A What is Demand?

All quantities of goods and services buyers are willing and able to buy at various prices

1 Demand describes how price influences buyers behavior.

- If the price increases, the quantity a buyer will purchase will decrease

- If the price decreases, the quantity a buyer will purchase will increase

2 Shift factors of demand

- Society’s income

- Prices of other goods

- Expectation

- Tastes

3 The demand curve

* A change in price causes a movement along a give demand curve

A decrease in price will increase the quantity demand

* A change in one of the shift factors will shift the demand curve to the left or to the right.

A change in income → Demand increases or decreases→Demand curve moves to the right or left

When society’s income is higher, buyer are willing and able to buy more Demand will increase, the demand curve shifts to the right On the other hand, when

society’s income is lower, buyer are willing and able to buy less Demand will decrease, the demand curve moves to the left

B What is supply?

1 The seller will be influenced by price when deciding how much to sell at various prices.

- As the price of a good or service rises, the quantity supplied will increase

- As price decreases, the seller will produce less and the quantity supplied will decrease

2 The shift factors of supply

- Change in prices of inputs

- Technology

- Taxes

- Supplier’s expectations

3 The supply curve

* A change in price causes a movement along a give supply curve

+ Price increase causes quantity supplied increase

+ Price decrease causes quantity supplied decrease

* A change in one of the shift factors will shift the supply curve to the left or to theright

A change in prices of inputs→Supply decreases or increases→ Supply curve moves

to the right or left

When the price of inputs increases, producers are willing and able to produce less, supply will decrease As the result, the supply curve will move to the left On the other hand, when the price of inputs decreases, producers are willing and able to produce more Supply will increase, the supply curve will move to the right

4.

Demand (Supply) Quantity demand (Quantity supply)

-All quantities of good and service

buyers (sellers) are willing and able to

buy (sell) at various prices

- Is influenced by a change in one of

shift factors

- The specific quantity of good and service buyers (sellers) are willing and able to buy (sell) at a certain price

- Is influenced by a change in price

Shift factors change Price change

Make the entire demand/supply curve

move to the right or to the left

Cause a movement along a give demand/supply curve

Equilibrium: Điểm cân bằng

- Equilibrium is a situation in which there is no tendency for change

- Make in equilibrium when there is no reason for the market price of product to rise or to fall

- It occurs where quantity demanded equal quantity supplied

Questions:

1 How does the price of a good influence its quantity demand and quantity

supplied?

2 What are shift-factors of demand? Analyzing one of shift-factors?

3 What are shift-factors of supply? Analyzing one of shift-factors?

Unit 6: Public finance

face value: mệnh giá in trên trái phiếu, cổ phiếu

federal debt: Nợ liên bang

Public Finance is concerned with how a government can rise and spend its funds.

1 Federal Budget

Federal Budget is the amount of money that is avaible for a federal government to

spend in a particular year

- Federal tax revenues mainly come from 3 major sources

+ Individual income taxes: thuế thu nhập cá nhân

+ Payroll taxes: thuế sử dụng lao động

+ Corporate income taxes: thuế thu nhập doanh nghiệp

Individual income taxes Corporate income taxes Payroll taxes

A tax paid by people on

the money they earn

A tax that a company has

to pay on its profits

A tax imposed on wages, salaries of employees and employers

Federal funds

↓

- Federal funds are general revenues wich include

income taxes and corporate taxes

- Fund the government in general

- Trust funds are shaped

by payroll taxes

- Pay for very specific programs such as social, Security and Medicare

How? By issuing and selling treasury bonds or other types of securities.

What is the treasury bond?

Treasury bond is a debt security, issued by the government of a nation

- Anyone can buy

- It has fixed interest rate

- The price of a bond is less than the worth and a bond is mature on the date at which it is worth its face value

3 Federal Debt

What is the Federal Debt?

The federal debt is the sum of the debt held by the public plus the debt held by

federal account

Debt held by the public Debt held by federal account

- Debt held by the public is total amount

the government owens to all of its

creditors in the general public

- Creditors:

+ International investors

+ Domestic private in vestors

+ Federal reserve bank

+ State and local government

- Two-Thirds of the federal debt is debt

held by the public

- Debt held by federal account is the amount of the money that the treasury has borrowed from itself

- Creditors: Itself

- One-Third of the federal debt is debt held by federal account

Questions:

1 What are two types of funds from taxation?

2 What is the federal debt?

3 What are main sources of government revenues?

Unit 7: Fiscal policy

shrinks = Slow down:

- Expansionary fiscal policy: CSTK nới lỏng

+ Definition: Fiscal policy is expansionnary when taxation is reduced or public

- Contractionary fiscal policy: CSTK thắt chặt

+ Definition: Fiscal policy is contractionary when taxation is increased or public

spending is reduced

+ Contractionary fiscal policy might occur when a government feels its economy isgrowing too fast or inflation is high

+ Aims: It’s used to decrease spending & demand, put pressure on price and slow

down the economy

Expansionary fiscal policy Contractionary fiscal policy

What? when taxation is reduced or public

spending is increased

when taxation is increased or public spending is reduced

When? The economy is not growing fast

enough or unemployment is too high

The economy is growing too fast or inflation is high

What for? Create jobs, increase spending &

demand and develop the economy

Decrease spending & demand,put pressure on price and slow down the economy

5 Factors

* Inside factors:

- The level of economic growth or unemployment likely in the future

- Whether or not to run a budget deficit

- Political considerations

* Outside factors:

- Fiscal policies of other countries

- The requirements of IMF

6 Deficit spending

Deficit spending is spending funds obtained by borrowing or printing instead of

taxation

Deficit spending is helpful Deficit spending is harmful

+ When unemployment is high or

economy is slowing down

 Government undertakes project to

create jobs

 More money is being pumped

into the economy, the economy

will then expand

+ When unemployment is low or the economy is overheating

 A deficit may result in rising price or inflation

 Additional government spending creates more competition for scarce workers and resources

Deficit spending can be financed in 2 ways:

If the government borrows money, the

interest rate may rise

If the government prints more money, price and inflation may rise

Questions:

1 In what way (How) do government spending and taxation affect the economy?

2 What is deficit spending? How is deficit helpful or harmful for the economy?

3 What is expansionary fiscal policy?

4 What is contractionary fiscal policy?

5 What factor should be considered in making decisions on the fiscal policy?

Unit 8: Taxation

a compulsory fee:

Expenditure:

Undeclare: không công khai

Tax-deductible: khấu trừ thuế

- Dissuade people from consuming some kinds of products

- Encourage capital investment

3.

Progressive tax (income tax) is designed

to redistribute wealth and income

- Progressive tax is always high

- Regressive tax (sales tax) is not really fair

- Business profits are generally taxed twice

4 Tax evasion

Means making false or no declaration to the tax authorities sefl-employed people undeclare their income

Many people undeclare their part-time jobs

Avoiding tax on salary

Tax avoidance means reducing the amount of tax you pay to a legal minimum

To reduce income tax liability, employers give

- Perk highly paid employees lots of perks

+ Company cars

+ Free health insurance

+ Subsidized lunches

- Tax shelters: individuals postpone the payment of tax through

+ Life insurance policies

Avoiding tax on profits

- Tax loss: Companies bring forward capital enpanditure so that at the end of the

year all profits have been used up

- Laundering money (rửa tiền): Criminal organizations tend to pass money through

a series of company in very complicated transactions to disguise its origin from theinspectors and the police

- Tax havens: Multinational companies often sepup head offices in countries where

taxes are low

Questions:

1 What are function of taxations?

2 What are ways to avoid tax?

- Way to avoid tax on salaries

- Way to avoid tax on profits?