Economics Overview: Units 1 to 15 Summary and Key Concepts | Tiếng anh chuyên ngành 1 | Học viện Tài chính

UNIT 1: ECONOMICS 1. Concept of economics?
-> Economics is the study of how people choose to use resources the most
effectively to produce goods and services in order to best satisfy human demand.
2. What do resources include/ contain?
-> Resources include: time, money, talent people have available,... tools and
the knowledge of how to combine them to create useful products and services. 3. What is well-being?
-> Well-being includes the satisfaction that people gain from the products and
services they choose to consume, from their time spent in leisure and with
family and community as well as in jobs, and security and services provided by effective governments.
4. What are the benefits of economics?
-> Economics shapes the world.
Studying economics helps us understand human thoughts and behaviors
Through economics, people and countries can become wealthy.
5. Two types/branches of economics?
-> They are: macroeconomics and microeconomics.
+ Microeconomics focus on the actions of individuals and industries.
+ Macroeconomics analyze the economic activity of an entire country or international marketplace. 6. Three economic theories?
-> * Adam Smith: (free market economy in Unit 2) + It is the Classical School
+ He believed that people who acted in their self-interest produced goods
and wealth benefited all of society.
+ Government shouldn’t restrict or interfere in markets. ● Karl Marx: (planed market) + It is Marxism
+ He believed the labor exploitation by factory owners and CEOs leads to
social unrest and class conflict.
+ To ensure social and economic stability, the theorized that laborers
should own and control the means of production.
● Keynes: (mixed market economy in U2) + It is a Keynesian School.
+ Describes how the government can act within capitalistic economics to promote economic stability. UNIT 2: ECONOMIC SYSTEMS
1. What are 3 types of economic systems/ models?
-> They are: free market economy, planned economy and mixed economy.
2. Concept/definition of free market economy/ market economy?
-> A free market economy is an economic system, in which economic relations
are regulated by the law of demand and supply. 3. Planned market economy?
-> Planned economy is an economic system, in which all production,
distribution and consumption quotas are fixed beforehand by the government. 4. Mixed market economy?
-> Mixed market economy is an economic system, in which some goods and
services are produced by the government and some by private enterprise. It’s
a combination of the market economy and the planned economy. UNIT 3: MICROECONOMICS
1. What is a definition from Microeconomics?
-> Microeconomics is a branch of economics that deals with how consumers
and firms behave while making decisions on the allocation of scarce resources.
2. What are the limited resources of consumers?
-> The limited resources of consumers are their incomes.
3. What are the limited resources of workers?
-> The limited resources of workers are their limited number of hours in a week
4. What are the limited resources of firms?
=> The limited resources of a firm are their limited budgets.
5. What are important themes in microeconomics?
-> There are: allocation of scarce resources, the roles of price and the role of markets.
6. What does consumer theory describe?
-> The consumer theory describes how consumers, based on their
preferences, maximize their well-being by making some trade-offs (It’s an opportunity cost).
7. What are the trade-offs made by consumers?
-> Trade-off the purchase of more of some goods with the purchase of less of
others. The trade-off current consumption for future consumption.
8. What are the trade-offs made by workers?
-> They must trade-off working now with continuing education. They trade-off
in the choice of employment. They must trade-off labour for leisure.
9. What are the trade-offs made by firms?
-> Trade-off producing some kinds of product instead of the others. Firm
trade-off: hiring more workers, building, new factory or doing both. 10. What is the theory of firms?
-> The theory of firms describes how these trade-offs can best be made by firms. UNIT 4: MACROECONOMICS 1. What is macroeconomics?
-> Macroeconomics is a branch of economics that studies the economic
activity of an entire country and the economy-wide phenomenal/ overall
economic trends/ macroeconomics factor.
2. What is the goal of macroeconomics?
-> The goal of macroeconomics is to look at overall economic trends such as
employment levels, balance of payments, inflation and so on.
3. What are major macroeconomics policies?
-> There are 2 majors: fiscal policy and monetary policy.
4. What are the main objectives of macroeconomics policies?
-> The basic objectives of these 2 main macroeconomics policies are: to
promote economic growth or maintain economic stability and to keep inflation under control. 5. What is inflation?
-> Inflation refers to the increase in the economy’s average level of prices.
-> inflation rate is the percentage rate of increase in the economy’s average
level of prices (tỷ lệ lạm phát là tỷ lệ phần trăm của sự tăng mức giá trung bình của nền kinh tế)
6. GDP? (gross domestic product)
-> Refers to the total value of goods & services produced in a country in a
single year (Đề cập đến tổng giá trị hàng hóa và dịch vụ được sản xuất tại một quốc gia trong một năm.)
7. Nominal GDP? (tổng SP quốc nội danh nghĩa)
-> is the total value of goods and services produced in a country in a single
year in a constant prices (tổng giá trị hàng hóa và dịch vụ được sản xuất tại
một quốc gia trong một năm theo giá so sánh) 8. Real GDP?
-> is the total value of goods and services produced in a country in a single
year in current prices (tổng giá trị hàng hóa và dịch vụ được sản xuất tại một
quốc gia trong một năm theo giá thực tế) UNIT 5: DEMAND AND SUPPLY 1. What is demand? (Cầu)
-> Demand is the quantity of goods and services that buyers are willing and
afford to buy at various prices in a period of time.
2. What is the quantity demanded? (Lượng cầu)
-> Quantity demanded is the quantity of goods and services that buyers are
willing and able to buy at a certain price.
3. What are shift factors of demand?
-> Shift factors of demand are society’s income, prices of other goods,
expectations of consumers and tastes. 4. What is the demand curve?
-> Demand curve is a graphic representation of the relationship between
product price and the quantity of the product demanded.
5. How do prices of a good influence its quantity demanded?
-> When other things are constant, if the prices of a good and a service
increase, the quantity demanded will decrease and vice versa. 6. What is supply?
-> Supply is the quantity of goods and services that sellers are willing and able to sell at various prices.
7. What are shift factors of supply?
-> Shift factors of supply are: prices of inputs, technology, taxes and suppliers’ expectations. 8. What is the supply curve?
-> Supply curve is a graphic representation of the relationship between
product price and the quantity of the product supplied.
9. When is a market in equilibrium?
-> A market is in equilibrium when the quantity demanded is equal to quantity supplied at a certain price. UNIT 6: PUBLIC FINANCE
1. Main sources of Gov revenue?
-> The main sources of government revenues are many different kinds of taxes.
2. A custom duty? (thuế hải quan)
-> A Tax (which is) Imposed on imports, paid by the importer (Đánh vào hàng
nhập khẩu, do nhà nhập khẩu trả)
3. An excise tax? (thuế tiêu thụ đb)
-> A Tax levied on some specific goods such as cars, gasoline, luxury goods in order to limit consumption. 4. Trust funds? Used for?
-> ..are funds generated from payroll taxes. They are used to pay for specific
Gov Programs such as medicare/ social security.
5. Federal funds (quỹ liên bang/ Ngân sách thường xuyên)
-> Federal funds are funds generated from personal income taxes and
corporate taxes. They are used to fund the Gov or to Conduct annual appropriation process.
6. 2 types of federal debts (2 loại nợ liên bang)
-> They are: Debt held by the public and Debt held by the federal accounts.
+ Debt held by the public: is the amount of money that Gov owes to
creditors in General public (including domestic and foreign
investors,Gov of other countries) (số tiền Chính phủ nợ các chủ nợ nói
chung (bao gồm các nhà đầu tư trong nước và nước ngoài, Chính phủ nước khác)
+ Debt held by the federal accounts: is the amount of money that Gov
borrows from itself Gov borrows the surplus of trust funds to pay for
other kinds of Gov spending ( Là số tiền mà Chính phủ vay từ chính
Chính phủ đi vay thặng dư của quỹ ủy thác để trả cho các loại chi tiêu khác của Chính phủ) UNIT 7: FISCAL POLICY 1. What is Fiscal policy?
-> Fiscal policy is a Gov policy related to Taxation and Public spending.
2. What is the main tool of fiscal policy?
-> They are GOV spending and Taxation.
3. What is the main objective of fiscal policy?
-> The main objective of fiscal policy is to maintain: Economic growth, High employment, Low Inflation.
4. What is Expansionary fiscal policy? (cstk mở rộng)
-> Fiscal policy is Expansionary when taxation is REDUCED or public spending is INCREASED.
5. When is Fiscal policy Expansionary?
-> When the economy is not growing fast enough and unemployment is too high.
6. What is Contractionary Fiscal policy?
-> Fiscal policy is contractionary when taxation is INCREASED or public spending is REDUCED.
7. What are Inside factors affecting decisions on a fiscal policy?
-> Level of economic growth or unemployment likely in the future. - unemployment rate - budget deficit - Political considerations.
8. Outside factors affecting decisions on a fiscal policy?
->The fiscal of another countries
- requirements of the International Monetary Fund (IMF) and World bank.
9. What is Deficit spending? (thâm hụt ngân sách)
-> Deficit spending is a budget of the Government in which money received less than spending. 10.
The way to finance deficit spending? (bù đắp bội chi NSNN)
-> 2 ways: by borrowing and printing money. UNIT 8: TAXATION 1. What is taxation?
-> Taxation is a compulsory fee that individuals or corporations have to pay to
the government to create the government general budget, according to your
income, your property, goods and services that you bought before.
2. What are the main functions of taxation?
-> - To raise revenue to finance Gov expenditure.
- To encourage capital investment. - To redistribute wealth.
- To dissuade people from consuming non-essential goods. 3. What is income tax?
-> Income tax is a tax imposed on wages, salaries or business profits. 4. What is progressive tax?
-> Progressive tax is a tax charged at higher rates on higher incomes. 5. Regressive tax?
-> Regressive tax is a tax charged at lower rates on higher sales.
6. What is value-added tax (VAT)?
-> Value-added tax (VAT) is a tax collected at each stage of production,
excluding already- taxed costs from previous stages (Thuế giá trị gia tăng
(VAT) là loại thuế thu ở từng công đoạn sản xuất, không bao gồm chi phí đã
tính thuế của các công đoạn trước).
7. What is Capital gain tax? (Thuế thu nhập vốn là gì?)
-> Capital gain tax is a tax levied on profits made by selling assets (Thuế thu
nhập vốn là loại thuế đánh vào lợi nhuận thu được từ việc bán tài sản).
8. What is capital transfer tax? (Thuế chuyển nhượng vốn là gì?)
-> Capital transfer tax is a tax levied on gifts inheritances over a certain value
(Thuế chuyển nhượng vốn là loại thuế đánh vào tài sản thừa kế quà tặng trên
một giá trị nhất định). 9. What is tax evasion?
-> Tax evasion is making false declarations to tax authorities (Trốn thuế là khai man với cơ quan thuế). 10.
What are some examples of tax evasions? -> - Self employment
- Doing undeclared part-time jobs - Laundering money 11. What is tax avoidance?
-> Tax avoidance is a tax reducing the amount of tax to a legal minimum
(Tránh thuế là việc giảm số lượng thuế đến mức tối thiểu hợp pháp). 12.
What are loopholes in the tax law? (lỗ hổng/kẽ hở trong luật thuế)
-> Loopholes in the tax laws are a way to avoid tax on salaries, companies
give perks/ benefits instead of taxable money to the employees ( including:
company car, subsidized lunches , free health insurance…) 13.
What are tax shelters? (công cụ né thuế)
-> People can postpone the payment of tax by investing in insurance policies,
pension plans or other investments. 14.
What is tax deductible? (khấu trừ thuế)
-> Tax deductible is a legal way to avoid tax on salaries subtracting a certain
amount from taxable income, such as donations to charities. 15. What is making a tax loss?
-> Making a tax loss is a way to avoid tax on profits companies bring forward
capital expenditure, so that at the end of the year, all the profits have been used up. 16. What are tax havens?
-> Tax havens are countries where taxes are low and multinationals often set
up head offices in those countries to reduce tax liability. 17.
What do criminal organizations often do to disguise the money?
-> pass money through a series of companies in complicated transactions to
disguise the origin of money from tax inspectors and police (Money laundering) UNIT 10: INSURANCE 1. What is insurance?
-> Insurance is a financial arrangement between the insurer and the insured,
in which the insured accepts to pay a certain amount (premium) to the insurer,
in exchange for promises of payment when an event in contract occurs.
2. What is Premium? (phí bảo hiểm)
-> Premium Insurance is the amount of money which is collected from every participant.
3. What does the insured receive from the ins system?
-> The insured receives a promise from the insurance system to be
compensated in the event of a loss. 4. What is Compensation?
-> The amount of money that the insurer pays for the insured in the event of a loss. 5. Insurance contract?
-> Contracts of insurance from a special class of contract in that the law
requires parties to them , the insured and the insurer, to exercise the utmost good faith towards each other.
UNIT 11: MONEY AND ITS FUNCTIONS
1. What is the concept of money?
-> Money is any commodity accepted by general consent as a medium of economic exchange.
2. What are four main functions of money? -> Money functions as :
- a medium of exchange (pt trao đổi)
- a measure of value (thước đo giá trị)
- a store of value (pt lưu trữ)
- a standard of deferred payments (pt thanh toán).
3. What is the medium of exchange?
-> Money functions as a medium of exchange when it is accepted as an
intermediate in exchange of goods and services.
4. What is the measure of value?
-> Money functions as a measure of value when it is accepted as a unit of
account (vật ngang giá chung) for measuring goods and comparing the values of different commodities. 5. What is a unit of account?
-> The unit of account is the unit in which price are quoted and account are
kept (Đơn vị đo lường là đơn vị giá được niêm yết và tài khoản được lưu giữ)
6. How is money used as a store of value?
-> Money is used as a store of value because it can be saved to buy in the
future but it is not a perfect store of value.
7. How is money used as a standard of deferred payment?
-> Money functions as a standard of deferred payment when it is accepted as
an intermediate and standard unit of account.
8. What is Commodity of money? (tiền đủ giá trị)
-> It is a useful good that serves as a medium of exchange. The value of
commodity money is about equal to the value of materials contained in it. 9. Token money?
-> Token money is a means of payment whose value or purchasing power as
money greatly exceeds its cost of production or value in uses other than as money. UNIT 12: MONETARY POLICY
1. Concepts of monetary policy?
-> Monterey policy is macroeconomic policy controlling a nation's money
supply and supervised by the Central Bank. 2. Objectives of MP?
-> + price stability. + exchange stability. + full employment & maximum output.+ economic growth. 3. 3 tools of MP?
-> Reserve requirement: is the required percentage of the reserve (deposits)
that banks and thrifts must hold in cash or in deposits at the central bank.
When the Fed increases reserve requirements, it decreases the money supply and vice versa.
- Discount rate (DR) is the rate of interest that the Central Bank charges its
member banks for loans. When the Fed increases the DR, the money supply is decreased e vice versa.
- Open market operations are the Fed's buying and selling of government
securities. When the Fed sells treasury bonds, it decreases the money supply & vice versa. 4. Expansionary MP?
-> - MP is expansionary when the money supply is increased when the
economy is slowing down or unemployment is high.
- The central bank increases the money supply by decreasing RR, dropping DR or buying more bonds. 5. Restrictive MP?
-> - MF is contractionary when the money supply is reduced when the
economy is overheating and inflation is high.
- The central bank decreases the money supply by raising RR, increasing DR or selling more bonds.
UNIT 14: THE FOREIGN EXCHANGE MARKET (FOREX) 1. FOREX?
-> The foreign exchange market is the financial market in which national currencies are exchanged. 2. Exchange rate?
-> Exchange rate is the rate at which the currency unit of one country may be exchanged for that of another. 3. features of FOREX?
-> - It's an over the counter market: primary communication instruments are telephones and computers.
- It isn't an organized market with fixed hours and a physical meeting place. - It has developed rapidly:
+ in response to the growth in the volume of world trade in goods & services.
+ in response to the expansion of international capital flows.
- It operates 24 hours a day, it never closes. 4. 2 types of transactions:
- Spot transactions are undertaken for an actual exchange of currencies a business days later.
- Forward transactions involve a delivery date further into the future, a year or more. 5. Who are customers in FOREX?
-> Are importing & exporting companies or multinational corporations in the
market because they meet foreign currency for their cross-border trade or investment. 6. Market makers?
-> Central banks participate as market makers. They quote bid (buying) rates
and offer (selling) rates for currencies. 7. Brokers? (nhà môi giới)
-> They are specialist companies which act as intermediaries between the
banks. The broker doesn’t deal on his own account but charges a commission for his services.
8. Why is London the world’s largest foreign exchange center?
-> - The large volume of international financial business generated.
- London also benefits from its geographical location, the foreign exchange
market thus trades 24 hours a day. UNIT 15. THE FINANCIAL MARKET
1. Concepts of the financial market?
-> The financial market is a market in which financial instruments are traded. 2. Functions of FM?
-> Main functions of the financial market are to channel funds from people who
have surplus funds to those who have a shortage of funds. 3. What is the Debt market?
-> Debt market is a financial market in which debt instruments (such as bonds or mortgages) are traded. 4. What is Equity market?
-> Equity market is a financial market in which equity instruments (such as common stocks) are traded. 5. What is primary market?
-> Primary market is a financial market in which new issues/fresh securities of
securities (including bonds and stocks) are sold to initial buyers. 6. What is secondary market?
-> Secondary market is a financial market in which securities that have been
previously issued can be resold.
7. What is stock exchange market?
-> Stock exchange market is a financial market in which buyers and sellers of
securities (or agents or brokers) meet in one central location to conduct trades. 8. What is OTC market?
-> OTC market is a financial market in which securities and other financial
instruments are traded over – the – counter. 9. What is money market ?
-> Money market is a financial market in which only short – term debt
instruments (those with maturity of less than one year) are traded. 10. What is capital market?
-> The capital market is a financial market in which longer – term debts (those
with original maturity of one year or greater) and equity instruments are traded.