Textual Dictionary
Chapter One
Introduction to Economics
Introduction to Economics
Words from the Chapter
The following words are taken from this chapter. Meanings are given in English for clear study.
| Word (Pronunciation) | Meaning | Synonyms | Antonyms | Example Sentence |
|---|---|---|---|---|
| scarcity (skair-si-tee) | A condition in which resources are limited. | limitation (a restricted supply) shortage (a lack of enough resources) |
unlimited (without a limit) | Scarcity makes people select their wants according to importance. Scarcity makes people choose their wants according to importance. |
| resources (ree-sor-siz) | Goods, wealth, or other means used to fulfil wants. | wealth (valuable means) goods (useful products) |
wants (things people desire) | Resources are necessary to produce goods and services. Resources are needed to produce goods and services. |
| discipline (dis-uh-plin) | A subject or organized field of study. | subject (an area of study) science (organized knowledge) |
— | Economics received recognition as a separate discipline. Economics became recognized as a separate field of study. |
| production (pruh-duk-shun) | The process of making goods or providing services. | creation (the making of something) output (goods produced) |
consumption (the use of goods) | Production and consumption were the main aims of primitive society. Primitive society focused mainly on production and consumption. |
| consumption (kun-sump-shun) | The use of goods and services to satisfy wants. | use (the act of using) expenditure (spending) |
production (the making of goods) | Consumption was one of the main aims of primitive society. Using goods was one of the main aims of primitive society. |
| welfare (wel-fair) | The well-being and benefit of human beings. | well-being (a good condition of life) benefit (an advantage) |
— | Marshall emphasizes human welfare more than resources. Marshall gives greater importance to human well-being than to resources. |
| recession (ree-sesh-un) | A period of economic decline. | decline (a fall) depression (a severe economic downturn) |
development (economic progress) | Keynes supported government interference to help the economy recover from recession. Keynes supported government action to help the economy leave recession. |
| agriculture (ag-ri-kul-cher) | The productive activity of cultivating land and producing farm goods. | farming (cultivating land) cultivation (growing crops) |
industry (manufacturing activity) | The physiocrats considered agriculture a productive sector. The physiocrats regarded farming as a productive sector. |
Total words: 8
1. How to Use This Sheet
- Read the chapter before studying the dictionary table.
- Cover the meaning column and test yourself on each word.
- Say each word aloud using the pronunciation guide.
- Compare the synonyms and antonyms to understand the word more clearly.
- Use the example sentences as models for writing practice.
- Review the key points after reading the chapter and the table.
◆Key Points
- Economics helps people overcome financial problems and supports human, social and national development.
- The Greek word “oikonomia” means the management of the household.
- Adam Smith’s book published in 1776 provided the basis of modern economics.
- Scarcity exists because human wants are unlimited while resources are limited.
- Scarcity requires people to select wants according to their importance.
- Resources are needed to produce goods and services.
- Adam Smith focused on wealth, Professor Marshall focused on human welfare, and L. Robins focused on unlimited wants and scarce resources.
- Microeconomics studies individual units such as a person, household, farm or commodity market.
- Macroeconomics studies aggregate economic behaviour such as total consumption, investment, national production and income.
- Keynes supported government interference to help an economy recover from recession.
Chapter Word Review
| Word (Pronunciation) | Meaning | Synonyms | Antonyms | Example Sentence |
|---|---|---|---|---|
| scarcity (skair-si-tee) | A condition in which resources are limited. | limitation; shortage | unlimited | Scarcity makes people select their wants according to importance. |
| resources (ree-sor-siz) | Goods, wealth or other means used to fulfil wants. | wealth; goods | wants | Resources are necessary to produce goods and services. |
| discipline (dis-uh-plin) | A subject or organized field of study. | subject; science | — | Economics received recognition as a separate discipline. |
| production (pruh-duk-shun) | The process of making goods or providing services. | creation; output | consumption | Production and consumption were the main aims of primitive society. |
| consumption (kun-sump-shun) | The use of goods and services to satisfy wants. | use; expenditure | production | Consumption was one of the main aims of primitive society. |
| welfare (wel-fair) | The well-being and benefit of human beings. | well-being; benefit | — | Marshall emphasizes human welfare more than resources. |
| recession (ree-sesh-un) | A period of economic decline. | decline; depression | development | Keynes supported government interference to help the economy recover from recession. |
| agriculture (ag-ri-kul-cher) | The productive activity of cultivating land and producing farm goods. | farming; cultivation | industry | The physiocrats considered agriculture a productive sector. |
Total words: 8
2. Key Words - Main Table (1-15)
| Word (Pronunciation) | Meaning | Synonyms | Antonyms | Example Sentence |
|---|---|---|---|---|
| economics (ee-kuh-NOM-iks) | The study of economic activities, resources, wants and human welfare. | economic science (the study of the economy) political economy (the study of economic affairs) | — | Economics helps people overcome financial problems. Economics supports people in dealing with financial difficulties. |
| financial (fy-NAN-shul) | Related to money, income or economic resources. | monetary (related to money) economic (related to the economy) | nonfinancial (not related to money) noneconomic (not economic) | Human beings struggle with financial problems for survival. People face money-related difficulties in order to survive. |
| survival (ser-VY-vul) | The state of continuing to live or exist. | existence (continued life) continuance (the act of continuing) | death (the end of life) extinction (complete disappearance) | Human beings face financial problems for their survival. People deal with money problems to continue living. |
| obstacles (OB-stuh-kulz) | Problems or difficulties that block progress. | barriers (things that block progress) difficulties (hard problems) | advantages (helpful conditions) assistance (help or support) | People try to overcome various obstacles throughout their lives. People work to defeat different difficulties during life. |
| subject (SUB-jikt) | A field of study or an area of knowledge. | discipline (an organized field of study) topic (an area discussed) | — | Economics is an important subject for understanding economic problems. Economics is a field that helps explain economic difficulties. |
| development (di-VEL-up-muhnt) | Growth or improvement over time. | progress (forward improvement) advancement (movement to a higher stage) | decline (a fall) backwardness (lack of progress) | Economics plays a significant role in human, social and national development. Economics contributes to progress in people, society and the nation. |
| origin (OR-uh-jin) | The beginning or source of something. | beginning (the starting point) source (the place from which something comes) | end (the final point) result (the outcome) | The chapter discusses the origin and development of economics. The chapter explains how economics began and grew. |
| principles (PRIN-suh-pulz) | Basic rules or ideas that guide a subject. | rules (guiding directions) foundations (basic supporting ideas) | exceptions (cases outside a rule) disorder (lack of guiding structure) | The chapter introduces the ten main principles of economics. The chapter presents ten basic economic ideas. |
| scarcity (SKAIR-suh-tee) | A condition in which resources are limited compared with wants. | shortage (a lack of enough resources) limitation (a restricted supply) | abundance (a large supply) plenty (more than enough) | Scarcity requires people to select their wants according to importance. Limited resources make people choose important wants first. |
| unlimited (un-LIM-uh-tid) | Having no fixed end or limit. | endless (without an end) boundless (without boundaries) | limited (restricted in amount) finite (having an end) | Human wants are unlimited, but resources are limited. People have endless wants although available resources have limits. |
| wants (wonts) | Things that people desire or need to satisfy. | desires (things wished for) needs (things required) | indifference (lack of desire) unwillingness (lack of wish) | Human beings cannot get everything they want. People cannot obtain every desired thing. |
| concept (KON-sept) | A general idea or understanding of something. | idea (a thought) notion (an understanding) | reality (an actual condition) fact (something known to be true) | The chapter explains the concept of economics. The chapter explains the central idea of economics. |
| systems (SIS-tumz) | Organized methods or arrangements for managing activities. | structures (organized arrangements) methods (ways of doing something) | disorder (lack of organization) chaos (complete confusion) | The chapter introduces different economic systems. The chapter presents various organized economic arrangements. |
| production (pruh-DUK-shun) | The process of making goods or providing services. | creation (the making of something) output (goods or services produced) | consumption (the use of goods) destruction (the act of damaging or ending something) | Production was a main aim of primitive society. Primitive society focused on making goods and providing services. |
| consumption (kun-SUMP-shun) | The use of goods and services to satisfy wants. | use (the act of using) expenditure (spending) | production (the making of goods) savings (income not spent) | Consumption was a main aim of primitive society. Using goods and services was an important activity in primitive society. |
Total words: 15
3. Key Words - Main Table (16-30)
| Word (Pronunciation) | Meaning | Synonyms | Antonyms | Example Sentence |
|---|---|---|---|---|
| ancient (AYN-shuhnt) | Belonging to a very early period of history. | old (from the past) early (from an earlier time) |
modern (of the present time) recent (not long ago) |
Economics was simpler in ancient societies. Ancient societies had simpler economic life. |
| habitation (hab-i-TAY-shun) | A place or condition in which people live. | dwelling (a place to live) residence (a home) |
— | Food, clothing and habitation were basic needs of people. People needed food, clothing and a place to live. |
| exchanging (eks-CHAYN-jing) | Giving one thing and receiving another in return. | trading (buying or selling) swapping (giving one thing for another) |
keeping (retaining something) withholding (refusing to give) |
The practice of exchanging goods was very limited. People exchanged goods only to a small extent. |
| labour (LAY-bur) | Physical or mental work used in production. | work (activity requiring effort) effort (energy used to do something) |
idleness (lack of work) rest (freedom from work) |
Physical labour was the only means of production in primitive society. Primitive society depended on physical work to produce goods. |
| property (PROP-ur-tee) | Something owned by a person or group. | possession (something owned) ownership (the state of owning) |
dispossession (loss of ownership) abandonment (giving up ownership) |
Plato and Aristotle discussed individual property. The Greek thinkers examined private ownership. |
| wages (WAY-jiz) | Payments made to workers for their labour. | pay (money given for work) earnings (money received from work) |
unpaid work (work without payment) loss (absence of earnings) |
Plato and Aristotle discussed the wages of labourers. They considered payment for workers' labour. |
| slavery (SLAY-vuh-ree) | A system in which people are treated as the property of others. | bondage (a condition of forced service) servitude (forced dependence) |
freedom (the state of being free) liberty (personal independence) |
The Greek thinkers discussed the slavery system. They examined slavery as a social and economic issue. |
| mercantilism (MUR-kan-tuh-liz-um) | An economic policy that sought national wealth through international trade. | trade policy (a policy about commerce) commercialism (focus on trade and wealth) |
— | The expansion of international trade was termed mercantilism. Growing international trade became known as mercantilism. |
| surplus (SUR-plus) | An amount left over after needs or use have been met. | excess (more than needed) remainder (what is left) |
shortage (less than needed) deficit (a lack or shortfall) |
Mercantilism aimed at making the country's trade surplus. The policy sought more exports than imports. |
| physiocracy (fiz-ee-OK-ruh-see) | An economic doctrine that regarded agriculture as the productive sector. | economic doctrine (an economic system of ideas) agricultural theory (a theory centred on farming) |
— | The French propagated the tenets of physiocracy. French thinkers spread the ideas of physiocracy. |
| productive (pruh-DUK-tiv) | Able to produce goods, services or useful results. | fruitful (producing useful results) effective (producing the intended result) |
unproductive (not producing goods) wasteful (using resources without useful output) |
The physiocrats considered agriculture a productive sector. They regarded farming as capable of producing wealth. |
| taxation (tak-SAY-shun) | The collection of taxes by a government. | taxing (collecting taxes) levy (an imposed charge) |
tax relief (a reduction in tax) exemption (freedom from a charge) |
The French objected to excessive taxation. They opposed taxes that were too heavy. |
| recognition (rek-ug-NISH-un) | Acceptance that something has a particular status or importance. | acceptance (approval or acknowledgement) acknowledgement (recognition of something) |
rejection (refusal to accept) denial (refusal to admit) |
Economics received recognition as a separate discipline. Economics became accepted as an independent field. |
| recession (ree-SESH-un) | A period when economic activity declines. | downturn (a fall in activity) decline (a reduction) |
recovery (return to improvement) expansion (growth in activity) |
Government interference was proposed to help the economy leave recession. Government action was suggested for economic recovery. |
| interference (in-ter-FEER-ens) | Involvement in a situation in order to influence its result. | intervention (active involvement) involvement (participation in an issue) |
nonintervention (absence of involvement) restraint (self-control from acting) |
Keynes supported government interference in economic activities. Keynes favoured government involvement in the economy. |
Total words: 15
◆Key Points
- Ancient and primitive societies had simple economic activities.
- Food, clothing and habitation were basic needs in primitive society.
- The practice of exchanging goods was limited in primitive society.
- Physical labour was the main means of production in primitive society.
- Plato and Aristotle discussed property, wages, slavery and interest.
- Mercantilism developed through the expansion of international trade.
- Mercantilists sought national wealth, state power and a trade surplus.
- Physiocrats regarded agriculture, including mining and pisciculture, as productive.
- Physiocrats considered industry and trade to be non-productive sectors.
- Adam Smith's book published in 1776 helped economics gain recognition as a separate discipline.
- Keynes supported government interference to help an economy recover from recession.
4. Subject Terms and Definitions
| Word (Pronunciation) | Meaning | Synonyms | Antonyms | Example Sentence |
|---|---|---|---|---|
| economics (ee-kuh-NOM-iks) | The subject that studies economic activities, resources, wants and human welfare. | economic science; political economy | — | Economics helps people overcome financial problems. |
| scarcity (SKAIR-suh-tee) | The condition in which resources are limited compared with human wants. | shortage; limitation | abundance; plenty | Scarcity requires people to select their wants according to their importance. |
| resources (ree-SOR-siz) | Wealth or other means used to fulfil human wants and produce goods or services. | wealth; means | wants; needs | Resources are necessary to produce goods and services. |
| production (pruh-DUK-shun) | The activity of making goods or providing services. | creation; output | consumption | Physical labour was the main means of production in primitive society. |
| consumption (kun-SUMP-shun) | The use of goods and services to satisfy wants. | use; expenditure | production | Production and consumption were the main aims of primitive society. |
| welfare (WEL-fair) | The well-being and benefit of human beings. | well-being; benefit | — | Marshall emphasizes human welfare more than resources. |
| microeconomics (MY-kroh-ee-kuh-NOM-iks) | The branch of economics that studies an individual, household, farm or commodity market. | microeconomic analysis; individual economics | macroeconomics | Microeconomics discusses the behaviour of an individual household. |
| macroeconomics (MAK-roh-ee-kuh-NOM-iks) | The branch of economics that studies aggregate economic behaviour. | aggregate economics; macroeconomic analysis | microeconomics | Macroeconomics analyses total consumption, investment, production and income. |
Total terms: 8
5. Words in Context
Economics explains how people use limited resources to meet unlimited wants. Because scarcity exists, people must select their wants according to importance. These choices affect production and consumption in society.
The study of economics also considers human welfare and national development. Microeconomics examines an individual, household, farm or commodity market, while macroeconomics examines total consumption, investment, production and income. During a recession, Keynes supported government interference to help the economy recover.
| Word (Pronunciation) | Meaning | Synonyms | Antonyms | Example Sentence |
|---|---|---|---|---|
| scarcity (SKAIR-si-tee) | A condition in which resources are limited compared with wants. | shortage; limitation | abundance; plenty | Scarcity requires people to select their wants according to their importance. |
| resources (ree-SOR-siz) | Wealth or other means used to fulfil wants and produce goods or services. | wealth; means | wants; needs | Resources are necessary to produce goods and services. |
| wants (wonts) | Things that people desire or need to satisfy. | needs; desires | satisfaction; fulfilment | Human wants are unlimited. |
| production (pruh-DUK-shun) | The activity of making goods or providing services. | creation; output | consumption; destruction | Physical labour was the main means of production in primitive society. |
| consumption (kun-SUMP-shun) | The use of goods and services to satisfy wants. | use; expenditure | production; saving | Production and consumption were the main aims of primitive society. |
| welfare (WEL-fair) | The well-being and benefit of human beings. | well-being; benefit | — | Marshall emphasizes human welfare more than resources. |
| development (di-VEL-up-muhnt) | Growth or improvement over time. | progress; advancement | decline; backwardness | Economics plays a significant role in human, social and national development. |
| microeconomics (MY-kroh-ee-kuh-NOM-iks) | The branch of economics that studies an individual, household, farm or commodity market. | microeconomic analysis; individual economics | macroeconomics | Microeconomics discusses the behaviour of an individual household. |
| macroeconomics (MAK-roh-ee-kuh-NOM-iks) | The branch of economics that studies aggregate economic behaviour. | aggregate economics; macroeconomic analysis | microeconomics | Macroeconomics analyses total consumption, investment, production and income. |
| recession (ree-SESH-un) | A period of economic decline. | decline; depression | development; recovery | Keynes supported government interference to help the economy recover from recession. |
Total words: 10
6. Exercise 1 - Match the Meaning
Match each word in Column A with the correct meaning in Column B. Write the matching letter beside each word.
| Column A: Word | Column B: Meaning |
|---|---|
| 1. scarcity (SKAIR-suh-tee) | A. The branch of economics that studies aggregate economic behaviour. |
| 2. welfare (WEL-fair) | B. The process of making goods or providing services. |
| 3. agriculture (AG-ri-kul-cher) | C. A condition in which resources are limited compared with wants. |
| 4. microeconomics (MY-kroh-ee-kuh-NOM-iks) | D. The well-being and benefit of human beings. |
| 5. production (pruh-DUK-shun) | E. A subject or organized field of study. |
| 6. recession (ree-SESH-un) | F. The productive activity of cultivating land and producing farm goods. |
| 7. discipline (DIS-uh-plin) | G. The use of goods and services to satisfy wants. |
| 8. consumption (kun-SUMP-shun) | H. The branch of economics that studies an individual, household, farm or commodity market. |
| 9. resources (ree-SOR-siz) | I. A period of economic decline. |
| 10. macroeconomics (MAK-roh-ee-kuh-NOM-iks) | J. Goods, wealth or other means used to fulfil wants and produce goods or services. |
Answer Key
1–C; 2–D; 3–F; 4–H; 5–B; 6–I; 7–E; 8–G; 9–J; 10–A
1–C; 2–D; 3–F; 4–H; 5–B; 6–I; 7–E; 8–G; 9–J; 10–A
Worked Review Series
Ex. A student has limited money but several wants. What economic problem does this situation show?
Sol:
Situation = limited money + many wants
Result = all wants cannot be satisfied
Concept = scarcity
Ans. The situation shows scarcity of resources.
Situation = limited money + many wants
Result = all wants cannot be satisfied
Concept = scarcity
Ans. The situation shows scarcity of resources.
Ex. A person ranks several wants and satisfies the most necessary wants first. What process is being used?
Sol:
Many wants = several desired things
Limited resources = every want cannot be satisfied
Priority = the most necessary wants come first
Ans. The person is making a selection of wants.
Many wants = several desired things
Limited resources = every want cannot be satisfied
Priority = the most necessary wants come first
Ans. The person is making a selection of wants.
Ex. Which branch studies an individual household, farm or commodity market?
Sol:
Unit studied = individual household, farm or commodity market
Branch = microeconomics
Contrast = aggregate economic behaviour belongs to macroeconomics
Ans. The branch is microeconomics.
Unit studied = individual household, farm or commodity market
Branch = microeconomics
Contrast = aggregate economic behaviour belongs to macroeconomics
Ans. The branch is microeconomics.
Ex. Which economist focused on wealth, which focused on human welfare, and which explained unlimited wants with scarce resources?
Sol:
Wealth = Adam Smith
Human welfare = Professor Marshall
Unlimited wants + scarce resources = Professor L. Robins
Ans. Adam Smith focused on wealth, Marshall on human welfare, and L. Robins on unlimited wants and scarce resources.
Wealth = Adam Smith
Human welfare = Professor Marshall
Unlimited wants + scarce resources = Professor L. Robins
Ans. Adam Smith focused on wealth, Marshall on human welfare, and L. Robins on unlimited wants and scarce resources.
Total words: 10
7. Exercise 2 - Fill in the Blanks
Fill in each blank with the correct word from the word bank. Use each word once.
Word Bank: oikonomia, scarcity, resources, selection, discipline, production, consumption, welfare, microeconomics, macroeconomics
- The Greek word means the management of the household.
- The limited supply of resources compared with human wants is called .
- Goods, wealth and other means used to fulfil wants are called .
- Choosing wants according to their importance is known as the of wants.
- Economics received recognition as a separate .
- The process of making goods or providing services is called .
- The use of goods and services to satisfy wants is called .
- Marshall placed greater emphasis on human .
- The branch that studies an individual, household, farm or commodity market is .
- The branch that studies total consumption, investment, national production and income is .
Answer Key
1. oikonomia 2. scarcity 3. resources 4. selection 5. discipline
6. production 7. consumption 8. welfare 9. microeconomics 10. macroeconomics
6. production 7. consumption 8. welfare 9. microeconomics 10. macroeconomics
Ex. A student has 1,000 taka and several wants. What economic problem is shown?
Sol:
Money available = 1,000 taka
Human wants = many
Resources compared with wants = limited
Economic problem = scarcity
Ans. The situation shows scarcity of resources.
Money available = 1,000 taka
Human wants = many
Resources compared with wants = limited
Economic problem = scarcity
Ans. The situation shows scarcity of resources.
Ex. A person has many wants but satisfies the most necessary wants first. What process is being used?
Sol:
Number of wants = many
Available resources = limited
Necessary wants first = priority
Process used = selection of wants
Ans. The person is making a selection of wants.
Number of wants = many
Available resources = limited
Necessary wants first = priority
Process used = selection of wants
Ans. The person is making a selection of wants.
Ex. Arrange these milestones in chronological order: Adam Smith's book in 1776, ancient discussions, and the development of economics before modern times.
Sol:
First stage = ancient discussions
Next stage = economics gradually became more complicated
Recognition as a discipline = Adam Smith's book in 1776
Ans. The order is ancient discussions, gradual development, and recognition as a separate discipline in 1776.
First stage = ancient discussions
Next stage = economics gradually became more complicated
Recognition as a discipline = Adam Smith's book in 1776
Ans. The order is ancient discussions, gradual development, and recognition as a separate discipline in 1776.
Ex. Identify the branch of economics that studies a household and the branch that studies total national income.
Sol:
Individual household = individual unit
Branch for individual units = microeconomics
Total national income = aggregate behaviour
Branch for aggregate behaviour = macroeconomics
Ans. A household belongs to microeconomics, while total national income belongs to macroeconomics.
Individual household = individual unit
Branch for individual units = microeconomics
Total national income = aggregate behaviour
Branch for aggregate behaviour = macroeconomics
Ans. A household belongs to microeconomics, while total national income belongs to macroeconomics.
Ex. Complete the economic relationship: unlimited wants + limited resources = ?
Sol:
Human wants = unlimited
Economic resources = limited
Unlimited wants + limited resources = scarcity
Required response = selection according to importance
Ans. Unlimited wants and limited resources create scarcity and require selection.
Human wants = unlimited
Economic resources = limited
Unlimited wants + limited resources = scarcity
Required response = selection according to importance
Ans. Unlimited wants and limited resources create scarcity and require selection.
8. Exercise 3 - Synonyms and Antonyms
Study the words from the chapter. Identify the requested synonym or antonym for each item.
- Write a synonym of scarcity.
- Write an antonym of resources.
- Write a synonym of discipline.
- Write an antonym of production.
- Write a synonym of consumption.
- Write a synonym of welfare.
- Write an antonym of recession.
- Write a synonym of agriculture.
- Write an antonym of development.
- Write a synonym of economics.
| Word (Pronunciation) | Meaning | Synonyms | Antonyms | Example Sentence |
|---|---|---|---|---|
| scarcity (skair-si-tee) | A condition in which resources are limited. | shortage; limitation | abundance; plenty | Scarcity requires people to select their wants according to importance. |
| resources (ree-sor-siz) | Goods, wealth or other means used to fulfil wants. | wealth; means; goods | wants; needs | Resources are necessary to produce goods and services. |
| discipline (dis-uh-plin) | A subject or organized field of study. | subject; science; field | — | Economics received recognition as a separate discipline. |
| production (pruh-duk-shun) | The process of making goods or providing services. | creation; output; making | consumption; use | Production and consumption were the main aims of primitive society. |
| consumption (kun-sump-shun) | The use of goods and services to satisfy wants. | use; expenditure; spending | production; creation | Consumption was one of the main aims of primitive society. |
| welfare (wel-fair) | The well-being and benefit of human beings. | well-being; benefit; advantage | — | Marshall emphasizes human welfare more than resources. |
| recession (ree-sesh-un) | A period of economic decline. | decline; depression; downturn | development; recovery; progress | Keynes supported government interference to help the economy recover from recession. |
| agriculture (ag-ri-kul-cher) | The productive activity of cultivating land and producing farm goods. | farming; cultivation; crop production | industry; manufacturing | The physiocrats considered agriculture a productive sector. |
| development (di-vel-up-muhnt) | Growth or improvement over time. | progress; advancement; growth | decline; backwardness; recession | Economics plays a significant role in human, social and national development. |
| economics (ee-kuh-nom-iks) | The study of economic activities, resources, wants and human welfare. | economic science; political economy; economic study | — | Economics helps people overcome financial problems. |
Total words: 10
Worked Example Series
Ex. Choose a synonym for scarcity from the table.
Sol:
Target word = scarcity
Related meaning = a limited supply
Synonym selected = shortage
Ans. Shortage.
Target word = scarcity
Related meaning = a limited supply
Synonym selected = shortage
Ans. Shortage.
Ex. Choose an antonym for resources from the table.
Sol:
Target word = resources
Meaning = means used to fulfil wants
Opposite selected = wants
Ans. Wants.
Target word = resources
Meaning = means used to fulfil wants
Opposite selected = wants
Ans. Wants.
Ex. Choose a synonym for production that matches the chapter context.
Sol:
Target word = production
Meaning = making goods or providing services
Synonym selected = creation
Ans. Creation.
Target word = production
Meaning = making goods or providing services
Synonym selected = creation
Ans. Creation.
Ex. Choose an antonym for recession.
Sol:
Target word = recession
Meaning = economic decline
Opposite selected = development
Ans. Development.
Target word = recession
Meaning = economic decline
Opposite selected = development
Ans. Development.
Ex. Choose a synonym for agriculture.
Sol:
Target word = agriculture
Meaning = cultivating land and producing farm goods
Synonym selected = farming
Ans. Farming.
Target word = agriculture
Meaning = cultivating land and producing farm goods
Synonym selected = farming
Ans. Farming.
Answer Key: 1. shortage 2. wants 3. subject 4. consumption 5. use 6. well-being 7. development 8. farming 9. decline 10. economic science
9. Exercise 4 - Make Sentences
Use each word in a clear sentence about economics. Read the pronunciation, meaning, synonyms and antonyms before writing.
| Word (Pronunciation) | Meaning | Synonyms | Antonyms | Example Sentence |
|---|---|---|---|---|
| scarcity (SKAIR-si-tee) | Limited availability of resources (a restricted supply) | shortage (lack) limitation (restriction) | abundance (plenty) surplus (extra supply) | Scarcity forces households to rank their wants. Scarcity makes households arrange their wants by importance. |
| resources (ree-SOR-siz) | Goods, wealth or means used to satisfy wants (available means) | wealth (valuable means) goods (useful products) | wants (desired things) needs (things required) | Limited resources cannot satisfy every human want. Limited resources cannot meet all human wants. |
| production (pruh-DUK-shun) | The making of goods or provision of services (creating output) | creation (making) output (goods produced) | consumption (use) expenditure (spending) | Production uses resources to make goods and provide services. Production turns resources into goods and services. |
| consumption (kun-SUMP-shun) | The use of goods and services to satisfy wants (use of output) | use (act of using) expenditure (spending) | production (making) creation (bringing into existence) | Consumption allows people to satisfy some of their wants. People use goods and services to satisfy some wants. |
| welfare (WEL-fair) | The well-being and benefit of human beings (a good condition of life) | well-being (good condition) benefit (advantage) | — | Marshall placed human welfare above the mere accumulation of resources. Marshall gave priority to human well-being rather than resources alone. |
| recession (ree-SESH-un) | A period of economic decline (economic downturn) | decline (fall) depression (severe downturn) | development (progress) recovery (return to improvement) | Keynes supported government action during a recession. Keynes supported government action when the economy declined. |
| agriculture (AG-ri-kul-cher) | The cultivation of land and production of farm goods (farming activity) | farming (cultivating land) cultivation (growing crops) | industry (manufacturing activity) trade (exchange of goods) | The physiocrats regarded agriculture as a productive sector. The physiocrats considered farming productive. |
| economics (ee-kuh-NOM-iks) | The study of economic activities, resources, wants and welfare (economic science) | economic science (study of the economy) political economy (study of economic affairs) | — | Economics explains why people must choose among competing wants. Economics explains the need for choice when resources are limited. |
Total words: 8
Worked Example Series: Sentence Construction
Ex. Make a sentence with scarcity.
Sol: Target word = scarcity
Economic condition = limited resources
Sentence = Scarcity requires people to select their wants according to importance.
Ans. Scarcity requires people to select their wants according to importance.
Economic condition = limited resources
Sentence = Scarcity requires people to select their wants according to importance.
Ans. Scarcity requires people to select their wants according to importance.
Ex. Make a sentence with resources.
Sol: Target word = resources
Meaning = means used to fulfil wants
Economic use = production of goods and services
Sentence = Resources are necessary to produce goods and services.
Ans. Resources are necessary to produce goods and services.
Meaning = means used to fulfil wants
Economic use = production of goods and services
Sentence = Resources are necessary to produce goods and services.
Ans. Resources are necessary to produce goods and services.
Ex. Make a sentence with welfare.
Sol: Target word = welfare
Meaning = human well-being
Relevant economist = Professor Marshall
Sentence = Professor Marshall emphasized human welfare in economics.
Ans. Professor Marshall emphasized human welfare in economics.
Meaning = human well-being
Relevant economist = Professor Marshall
Sentence = Professor Marshall emphasized human welfare in economics.
Ans. Professor Marshall emphasized human welfare in economics.
Ex. Make a sentence with recession.
Sol: Target word = recession
Meaning = economic decline
Suggested response = government interference
Sentence = Keynes supported government interference to help the economy recover from recession.
Ans. Keynes supported government interference to help the economy recover from recession.
Meaning = economic decline
Suggested response = government interference
Sentence = Keynes supported government interference to help the economy recover from recession.
Ans. Keynes supported government interference to help the economy recover from recession.
Ex. Make a sentence with agriculture.
Sol: Target word = agriculture
Meaning = cultivation of land and farm production
Historical view = a productive sector
Sentence = The physiocrats considered agriculture a productive sector.
Ans. The physiocrats considered agriculture a productive sector.
Meaning = cultivation of land and farm production
Historical view = a productive sector
Sentence = The physiocrats considered agriculture a productive sector.
Ans. The physiocrats considered agriculture a productive sector.
10. Vocabulary MCQ (1-10)
Practice Questions
Basic Economic Terms
1. What does the Greek word “oikonomia” mean?
A. Management of the household
B. Production of minerals
C. Government expenditure
D. International trade
Sol: [A] Oikonomia means the management of the household.
2. In economics, scarcity exists mainly because resources are limited while human wants are—
A. decreasing
B. unlimited
C. identical
D. fully satisfied
Sol: [B] The chapter explains that unlimited wants must be met with limited resources.
3. What does the term “selection of wants” describe?
A. Satisfying every want at once
B. Choosing wants according to importance
C. Increasing all resources
D. Avoiding all economic activities
Sol: [B] People satisfy their most necessary wants on a priority basis.
Origin and Development
4. Which event gave economics recognition as a separate discipline?
A. Plato discussing wages
B. The rise of Physiocracy
C. Adam Smith writing his famous book in 1776
D. The beginning of primitive society
Sol: [C] Adam Smith’s book published in 1776 became the basis of modern economics and established economics as a separate discipline.
5. According to the physiocrats, which activity was considered productive?
A. Trade only
B. Industry only
C. Agriculture, including mining and pisciculture
D. Luxury consumption
Sol: [C] The chapter states that the physiocrats regarded agriculture, mining and pisciculture as productive.
Definitions of Economics
6. Which economist emphasized human welfare more than resources?
A. Adam Smith
B. Professor Marshall
C. John Maynard Keynes
D. Gregory Mankiw
Sol: [B] Marshall defined economics through the general activities of human life and the achievement of human welfare.
7. Which idea is central to L. Robins’ definition of economics?
A. Unlimited wants and alternatively usable scarce resources
B. Wealth without any limitation
C. Trade without production
D. Government ownership of every resource
Sol: [A] Robins focused on human behaviour arising from unlimited wants and scarce resources that have alternative uses.
8. A student has limited money and must choose between several necessary goods. Which economic problem is illustrated?
A. Scarcity and selection of wants
B. Unlimited wealth
C. Productive agriculture
D. National production only
Sol: [A] Limited money cannot satisfy every want, so the student must select wants by importance.
Branches and Economic Policy
9. Which topic belongs mainly to macroeconomics?
A. The behaviour of one household
B. The output of one farm
C. Total consumption and national production
D. The market for one commodity
Sol: [C] Macroeconomics studies aggregate behaviour, including total consumption and national production.
10. During a recession, which policy did Keynes support to help the economy recover?
A. Decreasing government expenditure
B. Increasing taxes
C. Government interference, increased expenditure and lower tax rates
D. Ending all economic activity
Sol: [C] Keynes supported government action through increased expenditure, lower tax rates and increased overall consumption.
11. Quick Revision List
12. Practice Bank
Further Vocabulary
| Word (Pronunciation) | Meaning | Synonyms | Antonyms | Example Sentence |
|---|---|---|---|---|
| chronologically (kron-uh-LOJ-ih-klee) | In order according to time. | successively; sequentially | randomly; irregularly | The chapter asks students to describe the origin and development of economics chronologically. |
| habitation (hab-ih-TAY-shun) | A place or condition of living. | dwelling; residence | departure; abandonment | Food, clothing and habitation were basic needs in primitive society. |
| exchanging (eks-CHAYN-jing) | Giving one thing and receiving another in return. | trading; swapping | keeping; retaining | The practice of exchanging goods was very limited in primitive societies. |
| civilization (siv-uh-lih-ZAY-shun) | An organized society with developed culture and institutions. | society; culture | barbarism; primitiveness | Simple economic discussions existed in Hebrew Civilization. |
| mercantilism (MER-kan-tih-liz-um) | A system that sought national wealth through trade and state power. | trade policy; commercialism | — | The expansion of international trade was termed Mercantilism. |
| surplus (SUR-plus) | An amount left over after needs or use. | excess; remainder | shortage; deficit | Mercantilism aimed to make the surplus in trade. |
| minerals (MIN-uh-rulz) | Natural substances such as gold, silver and diamond. | ores; resources | — | Valuable minerals were imported during the period of Mercantilism. |
| physiocrats (fiz-ee-OK-rats) | Thinkers who regarded agriculture as the productive sector. | economic thinkers; reformers | — | The physiocrats considered agriculture a productive sector. |
| productive (pruh-DUK-tiv) | Able to produce goods or economic output. | fruitful; output-producing | unproductive; idle | The physiocrats considered agriculture productive. |
| alternatively (awl-TER-nuh-tiv-lee) | In ways that provide different possible uses or choices. | optionally; in turn | uniformly; permanently | Robins referred to alternatively usable scarce resources. |
| aggregate (AG-rih-gut) | Formed from the total of separate parts. | total; combined | individual; separate | Macroeconomics studies aggregate economic behaviour. |
| recession (ree-SESH-un) | A period of economic decline. | downturn; decline | recovery; development | Government interference was proposed to help the economy recover from recession. |
Study hint: Review the chapter context, compare each word with its synonyms and antonyms, and write a new economics sentence for each item.