Product VOŠ – 2.ročník – 2. semestr ©Lenka Lexová

Product - economic category A good, product or commodity is an output of economy Types of goods: public good, private good, common good, free good vs. scarce good, (non-)durable good, producer good), final good, consumer good, capital good Product is production of all economic subjects in a country ©Lenka Lexová

Gross national product GNP is the total value of all final goods and services produced by a country's factors of production and sold on the market in a given time period GNP includes net exports, gross investments and net property income from abroad ©Lenka Lexová

Nominal GNP measures the value of output during a given year using the prices during that year the general level of prices rise due to inflation causes an increase in nominal GNP but the volume of goods and services produced is the same ©Lenka Lexová

Real GNP measures the value of output in two or more different years by valuing the goods and services adjusted for inflation real GNP is usually used because it gives a more accurate view of the economy ©Lenka Lexová

Net national product Net National Product (NNP) is GNP minus depreciation Depreciation = amortisation of capital goods ©Lenka Lexová

Gross domestic product is the total value of final goods and services produced within a country's borders in a year counts income according to where it is earned rather than who owns the factors of production ©Lenka Lexová

Underground economy is all commerce avoiding taxes it includes legally-prohibited - drugs, prostitution, and gambling also trade in legal goods and services, trying to avoid taxes through money laundering, payment in cash, earnings without taxes such as babysitting etc. ©Lenka Lexová

Investments the production of goods which are not consumed but used for future production gross investment is also a component of GDP net investment deducts depreciation from gross investment ©Lenka Lexová

Savings income that is not consumed immediately by buying goods and services but is saved savings are closely related to investment, they can be invested and used to produce fixed capital, such as factories and machinery, this contributes to economic growth ©Lenka Lexová

Measuring prosperity GNP is used as a nominal measure of welfare non-material components of welfare include nuclear radiation, acid rain, toxic waste, human health, economic quality, education standards, culture, crime rate, life expectancy – these facts are called Net Economic Welfare (NEW) ©Lenka Lexová

Factors of production are resources used in the production of goods and services Land or natural resource – naturally-occurring goods such as soil and minerals that are used in the creation of products Labour – human effort used in production which also includes technical and marketing expertise Capital goods – human-made goods which are used in the production of other goods, these include machinery, tools and buildings ©Lenka Lexová

Economic growth is the increase in value of the goods and services produced by an economy it is the percent rate of increase in real gross domestic product refers to growth of potential output, i.e., production at "full employment," ©Lenka Lexová

Business cycle fluctuations of economic activity the cycle involves shifts of relatively rapid growth (recovery and prosperity), changing with periods of relative stagnation or decline (contraction or recession) one of the government's main roles is to smooth out the business cycle and reduce its fluctuations ©Lenka Lexová

Business cycle ©Lenka Lexová

Name an example of a: public good, private good, common good, free good,scarce good, nondurable good, durable good, final good, consumer good, capital good ©Lenka Lexová

Discuss the following topics: Talk about your favourite product. Which products do you buy every day/once a week/once a year/every five years? What is the best product you have ever bought? When you buy a product what is more important for you,: the quality, price, guarantee, after-sale service, free delivery, low deposit, interest-free credit? ©Lenka Lexová

Lifecycle of a product launch test promote manufacture modify discontinue design distribute stop making build or make introduce to the market change and improve try sth. to check how it works make a plan or drawing increase sales by advertising supply to shops or customers Match the phrases and put them into the correct order ©Lenka Lexová

Imagine the following situation: You are going to launch a new product (mobile phone/washing machine/laptop/car), present your product to your sales manager, the following items may help you.. special features, size, technical parameters, appearance, price, use, delivery, discount, guarantee, profile of your customers, target market ©Lenka Lexová

Listening Computer sales Have you ever had any problem when buying a product or after buying a product? What do you thing about on-line shopping? ©Lenka Lexová

Listen and discuss the statements Globalisation Globalisation damages local goods, services and culture. Globalisation increases competition among companies. Globalisation improves people´s living standards. Globalisation improves international trade and communication. Name some international companies and their products. ©Lenka Lexová

Resources English in Economics, Miroslav Kaftan, Libuše Horáková:, Karolinum 2004 Market Leader, D. Cotton, D. Falvey, S. Kent, Pearson Longman, 2007 http://www.esl-lab.com/ http://www.listenaminute.com/ www.wikipedia.org ©Lenka Lexová