CLC-cn1-Review Practice | Tiếng anh chuyên ngành 1 | Học viện Tài chính

WRITTING Topic questions:
1. Discuss the study of microeconomics
2. Discuss the allocation of scarce resources
3. What are differences bw Microeconomics and macroeconomics?
4. How are trust funds and federal fund used? give examples.
5. What are sources of money that Gov can borrow from?
6. Under what circumstance would deficit spending be helpful to the economy? Why? Give examples.
7. Under what circumstance would deficit spending be harmful to the economy? Why? Give examples.
8. When should Gov conduct expansionary fiscal policy? Why?
9. Why should Gov conduct contractionary fiscal policy? Why?
10. What are the differences bw fiscal policy and monetary policy?
11. Under what circumstance should Gov conduct expansionary monetary policy? Why?
12. Why should Gov conduct contractionary monetary policy? Why?
13. What are major objectives of monetary policy in general? How should the central bank
conduct the monetary policy to achieve these objectives?
14. How do debt markets operate?
- Debt markets are the markets in which debt instruments such as bonds or mortgages are traded.
- The borrowers have to pay debt holders fixed amounts of money at regular intervals,
consisting of interest and principal payments until a specified date (the maturity date), when a final payment is made.
-The debt holders always know how much their money will be worth in a certain period of time.
15. How do equity markets operate?
- Equity markets are the markets in which equity instruments such as stocks are traded.
-The stockholders are entitled to parts of the company's assets and are paid periodic
dividends. They can only get back their money by selling their shares to other investors on
secondary securities markets, but not from the share issuers. Dividends are flexible, it means
that dividends can be paid or not to the stockholders.
16. How do primary markets operate?
A primary market is a financial market in which new issues of a security, such as a bond or a
stock, are sold to initial buyers by the corporation or government agency borrowing funds.
Initial buyers are often investment banks, stock companies or insurance companies. These
markets help the issuers of share or bonds to raise more capital. However they are not well-
known to the public because fresh securities are sold to initial buyers.
17. How do secondary markets operate?
A secondary market is a financial market in which securities that have been previously issued
can be resold. These markets don't help issuers of shares or bonds to increase more money.
However, prices of fresh securities on the primary markets are determined by the secondary markets.
- These markets makes securities more liquid because the investors can get back their money
by selling their securities on the secondary markets.
18. What are differences between Exchanges and OTC markets?
Exchanges are the securities markets in which transactions are made/ undertaken in a single
location and during fixed hours. Only securities of listed companies - large companies which
satisfy the requirements of listing are traded in Exchanges. 1
Whereas, OTC markets are the markets in which transactions are made via means of
communication and throughout the day. These brings opportunities to buy and sell securities
of small and medium-sized companies who cannot be listed in the Exchanges.
6. What are differences between Money markets and Capital markets?
Money markets are the markets in which only short-term debt instruments, (with the maturity
of a year or less) are traded.
Capital markets are markets in which long-term debt instruments and equity instruments are traded.
Short-term debt instruments are more liquid, so they are safer to invest than instruments of capital markets. TRANSLATION I. V-E
1. Đối với hầu hết các nhà kinh tế vĩ mô, mục đích của ngành học này là tối đa hóa thu nhập
quốc dân và thúc đẩy tăng trưởng kinh tế quốc gia.
2. Chính sách tài khóa đảm bảo nền kinh tế phát triển và tăng trưởng thông qua các khoản thu
và chi tiêu phù hợp của chính phủ.
3. Chính sách tài khóa liên quan đến tác động của chi tiêu và thuế của chính phủ đối với tổng cầu và nền kinh tế.
4. Cả chính sách tài khóa và tiền tệ đều nhằm tạo ra một nền kinh tế ổn định hơn, đặc trưng
bởi lạm phát thấp và tăng trưởng kinh tế tích cực.
5. Cả chính sách tài khóa và tiền tệ là một nỗ lực để giảm bớt biến động kinh tế và giải quyết chu kỳ kinh tế.
6. Khi chi tiêu công vượt quá thu nhập công cộng, khoảng trống được lấp đầy bằng cách vay
tiền từ công chúng, hoặc từ các quốc gia hoặc tổ chức thế giới khác.
7. Một trong những mục tiêu chính của kinh tế vi mô là phân tích thị trường và xác định giá
cho hàng hóa và dịch vụ để phân bổ tốt nhất các nguồn lực hạn chế trong số các mục đích sử dụng khác nhau.
8. Chính sách tài khóa là cách Chính phủ và các nhà chức trách được bầu ra ảnh hưởng đến
nền kinh tế bằng cách sử dụng chi tiêu và thuế.
9. Nếu suy thoái kinh tế xảy ra, thì Chính phủ tìm cách chấm dứt suy thoái và ngăn ngừa khủng hoảng.
10. Chi tiêu công là số tiền được chi bởi các tổ chức chính phủ. Theo logic, chính phủ sẽ chi
tiền cho cơ sở hạ tầng, quốc phòng, giáo dục, y tế, vv để thúc đẩy sự phát triển và phúc lợi của đất nước. Suggested answers:
1. For most macroeconomists, the purpose of this discipline is to maximize national income
and promote national economic growth.
2. The fiscal policy ensures that the economy develops and grows through the government’s
revenue and government’s appropriate expenditure.
3. Fiscal policy relates to the impact of government spending and tax on aggregate demand and the economy.
4. Both fiscal and monetary policy aim at creating a more stable economy characterized by
low inflation and positive economic growth.
5. Both fiscal and monetary policy are an attempt to reduce economic fluctuations and solve the economic cycle.
6. When public expenditure exceeds public income, the gap is filled by borrowing money
from the public, or from other countries or world organizations. 2
7. One of the major goals of microeconomics is to analyze the market and determine the price
for goods and services that best allocates limited resources among the different alternative uses.
8. Fiscal policy is how Government and other elected officials influence the economy using spending and taxation.
9. If an economic recession has already occurred, then Government seeks to end the recession and prevent a depression.
10. Public expenditure is the money spent by government entities. Logically, the government
is going to spend money on infrastructure, defense, education, healthcare, etc. for promoting
the growth and welfare of the country. II. E-V
1. Microeconomics deals with the economic interactions of a specific person, a single entity or a company.
2. There are some economic events that are of great interest to both micro-economists and
macro-economists, but they will differ in how and why they analyze the events.
3. The primary tool central banks use to enact monetary policy is short-term interest.
4. The Fed can switch to expansionary monetary policy if economic growth slows or even turns negative.
5. Public Finance is concerned with income and expenditure of public authorities and with
the adjustment of one to the other.
6. Public finance explains the burden of public debt, why it is necessary and its effect on the economy.
7. The allocation function studies how to allocate public expenditure most efficiently to reap
maximum benefits with the available public wealth.
8. The purpose of expansionary fiscal policy is to boost growth to a healthy economic level.
This is needed during the contractionary phase of the business cycle. Suggested answers:
1. Kinh tế học vi mô liên quan đến các tương tác kinh tế của một người cụ thể, một thực thể hoặc một công ty.
2. Có một số sự kiện kinh tế được cả nhà kinh tế vi mô và nhà kinh tế vĩ mô quan tâm, nhưng
chúng sẽ khác nhau về cách thức và lý do họ phân tích các sự kiện.
3. Công cụ chính mà các ngân hàng trung ương sử dụng để ban hành chính sách tiền tệ là lãi suất ngắn hạn.
4. Fed có thể chuyển sang chính sách tiền tệ mở rộng nếu tăng trưởng kinh tế chậm lại hoặc
thậm chí chuyển sang tiêu cực.
5. Tài chính công liên quan đến thu nhập và chi tiêu của các cơ quan nhà nước và với sự điều
chỉnh của cái này sang cái khác.
6. Tài chính công giải thích gánh nặng nợ công, tại sao nợ là cần thiết và ảnh hưởng của nó đến nền kinh tế.
7. Chức năng phân bổ nghiên cứu cách phân bổ chi tiêu công một cách hiệu quả nhất để gặt
hái những lợi ích tối đa với nguồn lực công cộng có sẵn.
8. Mục đích của chính sách tài khóa mở rộng là thúc đẩy tăng trưởng đến mức kinh tế ở mức
độ lành mạnh. Điều này là cần thiết trong giai đoạn thu hẹp của chu kỳ kinh doanh. READING
III. Read the text and choose the best answer for each following questions
The supply of a particular product is the quantity of the product that producers are willing to
sell at each of various prices. Supply is thus a relationship between prices and the quantities 3
offered by producers, who are usually rational people, so we would expect them to offer more
of a product for sale at higher prices and to offer less of the product at lower prices.
The demand for a particular product is the quantity that buyers are willing to purchase
at each of various prices. Demand is thus a relationship between prices and the quantities
purchased by buyers, who are rational people too, so we would expect them to buy more of a
product when its price is low and to buy less of the product when its price is high. This is
exactly what happens when the price of fresh strawberries rises dramatically. People buy
other fruit or do without and reduce their purchases of strawberries. They begin to buy more
strawberries only when prices drop. Forms of Competition
A free-market system implies competition among sellers of products and resources.
Economists recognize four different degrees of competition, ranging from ideal competition
to no competition at all. These are pure competition, monopolistic competition, oligopoly, and monopoly.
Pure (or perfect) competition is the complete form of competition. It is the market
situation in which there are many buyers and sellers of a product, and no single buyer or
seller is powerful enough to affect the price of that product. The above definition includes several important ideas:
- there is a demand for a single product;
- all sellers offer the same product for sale;
- all buyers and sellers know everything there is to know about the market;
- the market is not affected by the actions of any one buyer or seller.
In pure competition the sellers and buyers must accept the going price. But who or
what determines the price? Actually, everyone does. The price of each product is determined
by the actions of all buyers and all sellers together, through the forces of supply and demand.
It is this interaction of buyers and sellers, working for their best interest that Adam Smith
referred to as the “invisible hand” of competition.
Neither sellers nor buyers exist in a vacuum. What they do is interact within a market.
And there is always one certain price at which the quantity of a product that is demanded is
exactly equal to the quantity of that product that is produced. Suppose producers are willing
to supply 2 million bushels of wheat at a price of $5 per bushel and that buyers are willing to
purchase 2 million bushels at a price of $5 per bushel. In other words, supply and demand are
in balance, or in equilibrium, at the price of $5. This is the "going price" at which producers
should sell their 2 million bushels of wheat. Economists call this price the equilibrium price
or market price. Under pure competition, the market price of any product is the price at which
the quantity demanded is exactly equal to the quantity supplied.
In theory and in the real world, market prices are affected by anything that affects
supply and demand. The demand for wheat, for example, might change if researchers
suddenly discovered that it had very beneficial effects on users' health. Then more wheat
would be demanded at every price. The supply of wheat might change if new technology
permitted the production of greater quantities of wheat from the same amount of acreage. In
that case, producers would be willing to supply more wheat at each price. Either of these
changes would result in a new market price. Other changes that can affect competitive prices
are shifts in buyer tastes, the development of new products that satisfy old needs, and
fluctuations in income due to inflation or recession. For example, generic or "no-name"
products are now available in supermarkets. Consumers can satisfy their needs for products
ranging from food to drugs to paper products at a lower cost, with quality comparable to
brand name items. Bayer was recently forced to lower the price of its very popular aspirin
because of competition from generic products. 4
Pure competition is only a theoretical concept. Some specific markets may come
close, but no real market totally exhibits perfect competition. Many real markets, however,
are examples of monopolistic competition. Monopolistic competition is a market situation in
which there are many buyers along with relatively many sellers who differentiate their
products from the products of competitors and it is very easy to enter into this market. The
various products available in a monopolistically competitive market are very similar in
nature, and they are all intended to satisfy the same need. However, each seller attempts to
make its product somewhat different from the others by providing unique product features —
an attention-getting brand name, unique packaging, or services such as free delivery or a "lifetime" warranty.
Product differentiation is a fact of life for the producers of many consumer goods,
from soaps to clothing to personal computers. Actually, monopolistic competition is
characterized by fewer sellers than pure competition, but there are enough sellers to ensure a
highly competitive market. By differentiating its product from all similar products, the
producer obtains some limited control over the market price of its product.
An oligopoly is a market situation (or industry) in which there are few sellers (2-8).
Generally these sellers are quite large, and sizable investments are required to enter into their
market. For this reason, oligopolistic industries tend to remain oligopolistic. Examples of
oligopolies are the American automobile, industrial chemicals, and oil refining industries.
Because there are few sellers in an oligopoly, each seller has considerable control
over price. At the same time, the market actions of each seller can have a strong effect on
competitors' sales. If one firm reduces its price, the other firms in the industry usually do the
same to retain their market shares. If one firm raises its price, the others may wait and watch
the market for a while, to see whether their lower price tag gives them a competitive
advantage, and then eventually follow suit. All this wariness usually results in similar prices
for similar products. In the absence of much price competition, product differentiation
becomes the major competitive weapon.
A monopoly is a market (or industry) with only one seller. Because only one firm is
the supplier of a product, it has complete control over price. However, no firm can set its
price at some astronomical figure just because there is no competition; the firm would soon
find that it had no sales revenue, either. Instead, the firm in a monopoly position must
consider the demand for its product and set the price at the most profitable level.
The few monopolies in American business don't have even that much leeway in
setting prices because they are all carefully regulated by government. Most monopolies in
America are public utilities such as we find in electric power distribution. They operate under
the security and control of various state and federal agencies. Choose the correct answer:
1. Competition offers consumers choices in …………. a. price b. quality c. style d. all of the above
2. In order for competition to exist there must be ………… a. many products
b. 2 or more companies in the same business c. profits
d. 2 or more companies in different businesses
3. An oligopoly exists when the control of the goods and services is in the hands of …… a. 1 large company b. several small companies c. 10 sizable companies
d. 2 big companies in the same business
4. Many real markets are examples of ……….. a. monopoly b. oligopoly c. oligopoly d. pure competition
5. By differentiating his product the producer obtains………… 5 a. many consumers b. control over price c. profit d. monopoly
6. Product differentiation is characteristic of ………… a. monopoly b. oligopoly
c. monopolistic competition d. pure competition
7. Barriers to enter the market are characteristic of a. monopoly b. oligopoly
c. monopolistic competition d. pure competition 6