1. Product
VOŠ – 2.ročník – 2. semestr
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2. 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
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3. 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
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4. 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
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5. 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
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6. Net national product
Net National Product (NNP) is GNP minus depreciation
Depreciation = amortisation of capital goods
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7. 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
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8. 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.
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9. 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
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10. 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
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11. 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)
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12. 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
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13. 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,"
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14. 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
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15. Business cycle
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16. 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
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17. 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?
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18. 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
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19. 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
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20. 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?
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21. 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.
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22. Resources
English in Economics, Miroslav Kaftan, Libuše Horáková:, Karolinum 2004
Market Leader, D. Cotton, D. Falvey, S. Kent, Pearson Longman, 2007
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