TÀI LIỆU ÔN TẬP : TIẾNG ANH CHUYÊN NGÀNH LÊ AN | CQ54/01.02 Cấu trúc đề thi : phần UNIT : ECONOMICS Phần : Read an article ( để kiểm tra phát âm ) Phần : Summarize ( tóm tắt ) unit I SUMMARY Lưu ý : Yêu cầu sử dụng thành thục từ nối để tạo thành nói hồn chỉnh Vì phần tóm tắt nên cố - Unit talks/tells Economics It includes / has main / points in gắng nói ngắn gọn nhưngus đầyabout đủ ý Tốt nêu vài ý quan trọng trong4từng phầnideas không nêu hết this unit Phần : Answer some questions HOẶC There are four main points in this unit Phần có số câu hỏi giám khảo đưa - The first point is definition of Economics Economics is the study of how people choose to use resources to improve their well-beings HOẶC Economics is the study of production and consumption of goods or services , the transfer of wealth to produce and obtain goods or services - Next / Secondly , it talks about two types / branches of Economics They are Microeconomics and Macroeconomics Microeconomics studies economic activities of inviduals or household and industries Macroeconomics studies economic activities of a country or international marketplace - Thirdly / The third one tells us about economics theories by Adam Smith , Karl Marx and Keynian School Adam Smith : an economist known as the father of economics He belived that people with their self-interest could create wealth that benefit all of society Market can regulate itself so government shouldn’t interfere Karl Marx : capitalism will eventually fail because of social unrest and class conflict laborers should own and control means of production Keynian School The role of government in capitalistic economy is significant Government regulates economy through economic policies - The last point / Finally , it mentions the importance of studying Economics Studying Economics helps people to understand human behavior or thought , and through Economics , countries and people could become wealthy II QUESTIONS What resources include ? Resource is anything that people use/combine to produce/make/create goods or services , with their knowledge and experience For example : labor, natural resources, capital, machines/equipments, technology What can be considered as important choices ? Important choices involve how much time to devote to work, to school, and to leisure; how many dollars to spend and how many to save , how to combine resources to produce goods and services; and how to vote and shape the level of taxes and the role of government What does the term “ well-being “ means ? Well-being is the satisfaction from using goods or services Hoặc : Well-being is the satisfaction people gain from the goods or services they choose to consume, from the time they spent in leisure and family and community as well as in jobs, and the security and services provided by effective governments What does Microeconomics / Macroeconomics study ? Microeconomics studies economic activities of inviduals or household and industries Macroeconomics studies economic activities of a country or international marketplace What can you learn from the economic theory of Adam Smith ? Market can regulate itself by the law of demand and supply so the government shouldn’t interfere In general, how can people benefit from studying Economics ? Studying economics can help us understand human thought and behavior And also people and countries could become wealthy through studying Economics What is one conflict of economics ? Resources are limited but people’s wants / needs are unlimited What are means of production / factors of production ? Anything that people use for producing goods and services For example : tools, equipments, machines, What are market forces ? They are demand and supply 10 What are some examples of economic relations ? Buyers – sellers Lenders – borrowers Employers – employees 11 Who is an economist ? They are people who study about Economics UNIT : ECONOMIC SYSTEMS Unit khơng có phần summary II QUESTIONS What is a free market economy ? A free market economy is an economic system in which the market is regulated by the law of supply and demand Companies compete freely and government influences the economy through its fiscal and budgetary policies What is a planned economy ? A planned economy is an economic system in which government controls the economy directly and make all decisions about economy : how much to produce , how to distribute, 3.What is a mixed economy ? A mixed economy is an economic system in which some goods and services are produced by the government and some by private enterprise What are the disadvantages of planned economy ? The company are not allowed to compete freely and depend on because the government make all the decisions UNIT : MICROECONOMICS I SUMMARY Unit talks about microeconomics There are main ideas Firstly, the author mentions the definition of microeconomics Microeconomics is the study of how to make the most of limited resources of individuals , households, firms Secondly, it talks about the allocation of scarce resources in different economic systems In planned economy, the government makes all decisions on allocation of resources In free market economy, allocation of resources is made by consumers , firms, Finally, it talks about major themes of microeconomics - Theme is the idea of making optimal trade-offs: It is about the consumer theory and theory of firms which points out the trade-offs made by consumers, workers and firms - Theme is the role of prices : Trade-offs are partly based on the price - Theme is the role of market : Market is the place where buyer and seller / consumers and firms interact Price is set in the market in free market economy II.QUESTIONS What does the term “trade-off” mean ? Trade-off is an exchange that occurs as a compromise /ˈkämprəˌmīz/ What can you learn from the consumer theory ? Consumer theory describes how consumers, based on their preferences, maximize their well-being by trading off the purchase of more of some goods with the purchase of less of others Give some examples explaining the trade-offs made by consumers ? Consumer have limited income, so they have to trade off buying more of some goods with buying less of others / trade off spending now with saving Give some examples explaining the trade-offs made by workers ? Workers have limited time, skills, health, education and experience, so they have to trade off working now with studying / work with leisure / working in good enviroment with less opportunity of advancement with working in worse enviroment with more opporturnity of advancement Give some examples explaining the trade-offs made by firms ? Firms have limited technology, they choose the kind of products to produce Firms have limited capital , production capacity , they choose the number of goods to produce / they choose to hire workers or to build more factories What does the theory of the firm indicate? It describes how trade-offs can be best made What are three important themes of microeconomics? They are how to make optimal trade-offs, the role of prices and the role of market UNIT : MACROECONOMICS I SUMMARY Unit talks about Macroeconomics There are main points : First, it talks about goal of macroeconomics The goal of macroeconomics is to look at overall economic trends of a country such as : Economic growth, Employment level, inflation , balance of payments, GDP, GNP, and so on Second, it mentions about major macroeconomics policies They are Fiscal policy and Monetary policy The basic objectives of these main macroeconomic policies are High economics growth, Keeping inflation under control, High employment, Balance of payment Make decisions To control Objectives of policy Fiscal policy Ministry of Finance Government’s revenue and spending Promote economic growth Keep inflation under control Monetary policy Central Bank Money supply Promote economic growth Keep inflation under control The last point is the relationship between microeconomics & macroeconomics There are differences between microeconomics and macroeconomics but they are interdependent and complement one another Definition Issues Microeconomics Macroeconomics The study of economic activities of individuals and firms The study of economic activities of a country or international market Price, demand & supply, competition between firms Inflation, economic growth, GDP, balance of payments Approach Bottom-up approach Top-down approach II QUESTIONS What are two major macroeconomics policies ? They are fiscal policy and monetary policy What are the main objectives of these two policies ? The main objectives of these two policies are promoting economic growth and keeping inflation under control What is the difference between microeconomics and macroeconomics ? Macroeconomics - The study of economic activities of individuals and firms - Look at overall economic trends: employment levels, economic growth, inflation, - Top-down approach Microeconomics The study of economic activities of a country or international market - Study how to allocate of limited resources - Bottom-up approach Why is it said that microeconomics and macroeconomics are interdependent and complement one another ? Because there are many overlapping issues between the two fields ( in this situation, overlapping means “ influence each other “ ) What is inflation ? Inflation is the rate at which the general level of prices for goods and services is rising What is GDP ? GDP ( or Gross Domestic Products ) is the total value of goods and services produces in a country in a year UNIT : DEMAND AND SUPPLY I SUMMARY Unit tells us about Demand & Supply It includes main points : First, it talks about demand & demand curve Demand is the quantity of goods & services that buyer are able and willing to buy at various prices Quantity demanded is the quantity of goods & services that buyer are able and willing to buy at certain prices A change in the Qd causes a movement along the demand curve A change in a shift factor causes the entire demand curve to shift to the left or to the right Other factors are constant Second, it talks about supply & supply curve Supply is the quantity of goods & services that seller are able and willing to sell at various prices Quantity supplied is the quantity of goods & services that seller are able and willing to sell at certain prices A change in the Qs causes a movement along the supply curve A change in a shift factor causes the entire supply curve to shift to the left or to the right Other factors are constant Finally, it talks about relationship between demand curve and supply curve It mentions equillibrium , which occurs when quantity demanded is equal to quantity supplied II QUESTIONS What is demand ? Demand is the quantity of goods & services that buyer are able and willing to buy at various prices What is supply ? Supply is the quantity of goods & services that seller are able and willing to sell at various prices What is the difference between “demand” and “quantity demanded” ? Definition • Quantity demanded is the quantity of goods and services buyers are able and willing to buy at a certain price • Demand is the quantity of goods and services buyers are able and willing to buy at various prices Factor price factors shift factors Change in demand curve the movement along the demand curve the entire demand curve to shift to the left/right Other factors are constant What is difference between “supply” and “quantity supplied” ? Definition • Quantity supplied is the Factor quantity of goods and services sellers are able and willing to sell at a certain price price factors • Supply is the quantity of goods and services sellers are able and willing to sell at various prices shift factors the movement along the supply curve the entire supply curve to shift to the left/right Change in supply curve Other factors are constant How prices of a good influnce its demand / supply ? A change in the price of a good causes a change in quantity demanded Other factors are constant If the price of a good increases, quantity demanded will decrease decreases, increase A change in the price of a good causes a change in quantity supplied Other factors are constant If the price of a good increases, quantity supplied will increase decreases, decrease When is a market in equillibrium ? A market is in equillibrium when there is no tendency for the price to change Quantity demanded is equal to quantity supplied What is excess demand ? What is excess supply ? It occurs when quantity demanded is more than quantity supplied | when quantity supplied is more than quantity demanded UNIT : PUBLIC FINANCE I SUMMARY Unit talks about Public Finance It includes main points : First, it talks about Government’s revenue from tax Public finance is concerned with how the government raises and spends money Government can raise money from different types of tax : individual income tax, corporate income tax, payroll tax, excise tax, customs duties, Once they are paid into the Treasury , individual income tax and corporate income tax are the sources of Federal Fund , while payroll tax become Trust Fund Second, it talks about Government’s revenue from borrowing Government can borrow money by issuing and selling bonds and pays prefixed interest rate Bonds are sold in different channels : Treasury, website, brokers, banks ,… The government debt includes debt held by the public and debt held by federal accounts Debt held by the public is the amount of money borrowed from public Debt held by the federal accounts is the amount of money borrowed from itself/ Treasury II QUESTIONS What is public finance concerned with ? Public finance is concerned with how the government raises and spends money What is Federal fund ? Trust fund ? Trust fund is from Payroll tax It is used for specific programs such as security and social medicare Programs are the same from year to year Federal fund is from individual income tax and corporate tax It is used for general programs Programs can be different from year to year basing on annual appropriation process What is Individual income tax ? Corporate tax ? Payroll tax ? Excise tax ? Customs duties ? Individual income tax is the tax imposed on income of individuals, paid by employers Corporate tax is the tax imposed on profit of a company Payroll tax is the tax imposed on employee’s salary, paid by both employers and employees Excise tax is the tax imposed on specific goods to limit consumption Customs duties is the tax imposed on imports, exports Debt held by the public and debt held by federal accounts ? Amount of money borrowed from public Investor can be any individuals or organizations in the country ( domestic investors ) or from foreign countries Amount of money that the government can borrow from itself/ Treasury Trust fund runs a surplus How does the government borrow money ? Government can borrow money by issuing and selling bonds and pays prefixed interest rate UNIT : FISCAL POLICY I SUMMARY Unit talks about Fiscal Policy It includes main points : First, it talks about Deficit & Deficit spending When the government spends more than it receives, it runs Deficit Deficit spending is spending money/funds from borrowing or printing instead of taxtation It can be useful/helpful or harmful to the economy Second, it talks about two kinds of fiscal policy Fiscal policy is a government policy It has tools : tax and public spending ( government spending ) Tax and government spending directly affect the performance of the economy Fiscal policy can be either expansionary or contractionary Finally, it mentions about factors to determine fiscal policy - Inside factors include: + Future unemployment level + Inflation rate + Economy growth + Decision whether to run deficit spending or not + Political consideration - Outside factors include: + Fiscal policy of other country + Requirements of the International Monetary Fund 10 II QUESTIONS What is deficit? Deficit: the government spends more than it receives What is deficit spending? Is it harmful or helpful? Why ? - Deficit spending: Spending money from borrowing or printing instead of taxation - It’s helpful when unemployment rate is high, economy grows slowly because government borrows money to undertake projects, it can create jobs for idle workers - It’s harmful when unemployment rate is low, economy overheats because it can increase inflation when the government increase money supply What are the Government major economic policies mentioned above ? What are they aimed at ? They are fiscal policy and monetary policy They are aimed at maintaining economic growth, high employment and low inflation Under what circumstances can fiscal policy be expansionary? Why ? Government should use expansionary fiscal policy when economic grows slowly and unemployment rate is high Because government can increase money supply throughout reducing taxation and increasing public spending Under what circumstances can fiscal policy be contractionary ? Why ? Government should use contractionary fiscal policy when overheating economy and high inflation Because government can restrict spending throughout increasing taxation and reducing public spending What are some factors to be considered when making fiscal policy? Inside factors: Future employment level, economic growth, borrowing or printing money, political consideration Outside factors: Fiscal policy of other countries, requirement of IMF Why should the government consider the fiscal policies of other countries ? Because the government want to give generous tax programs or the government want to control benefits to attract foreign investments UNIT : TAXTATION I SUMMARY Unit talks about Taxtion It includes main points : Firstly, it talks about Function of Taxtation 11 Raise government revenue Redistribute society income Regulate the economy Limit consumptions Protect domestic goods Second, it talks about advantages and disadvantages of Tax systems Progressive tax is a tax charging at higher rates on higher incomes Regressive tax is a tax charging at lower rates on higher sales Progressive Regressive Higher income, higher tax rate E.g : Income tax Higher percentage of lower income and smaller percentage of higher income E.g : Sale tax Can not redistribute wealth in society Redistribute wealth in society Discourage working or investment Third, it mentions about tax evasion Tax evasion: making false declarations to the tax authorities to reduce tax Undeclare part-time jobs or black (underground) economy are some ways of tax evasion Then, it is about avoiding tax on salaries There are many ways of avoiding tax on salaries by using loopholes in tax law - Reducing income tax by giving employees perks instead of taxable money - Life insurance policies, pension plans and other investments -> tax shelter - Charities donation -> tax deductible Final, it mentions about Avoiding tax on profits Companies have a lot of ways to avoid tax on profits : - Making a tax loss : convert profit into cost e.g: bring out capital expenditure - Set up head office in tax havens ( a country has low tax rate ) - Some criminal organizations launder money II QUESTIONS What is progressive tax ? Regressive tax ? 12 Progressive tax is a tax charging at higher rates on higher incomes Regressive tax is a tax charging at lower rates on higher sales What is direct and indirect taxes ? Direct tax is a tax levied on taxable person such as income tax Indirect tax is a tax levied on goods and services such as payroll tax, excise tax and custom duties,… What is payroll tax ? Corporate income tax ? Custom duties ? Excise duties ? Capital gain tax ? Capital transfer tax ? Payroll tax is the tax imposed on employee’s salary, paid by both employers and employees Corporate income tax is the tax imposed on profit of a company Customs duties is the tax imposed on imports, exports Excise duties is the tax imposed on specific goods to limit consumption Capital gain tax is a tax levied on capital gains, which are profits from the sale of specific types of assets, including stocks, bonds VAT ( value added tax ) is a tax collected at each stage of production What is tax avoidance ? Tax evasion ? Tax evasion: making false declarations to the tax authorities to reduce tax Tax avoidance: reducing the tax money to the legal minimum What are some ways to for an individual, a company to avoid tax ? Avoiding tax on salaries: Using loopholes in tax law, tax shelter, tax deductible Avoiding tax on company’s profits: make a tax loss, set up head office in tax heavens, launder money What is tax shelter ? Tax deductible ? Tax heaven ? Laundering money ? Tax shelter: postpone paying tax Tax deductible: subtract money from taxable money Tax heaven: a country has low tax rate Laundering money: put taxable money into different companies to disguise the origin of money What criminal organizations to disguise the origin of money ? Laundering money 13 What are some functions of taxation ? Raise government revenue Redistribute society income Regulate the economy Limit consumptions Protect domestic goods What is marginal rate ? The marginal rate : the tax people pay on any additional income UNIT 10 : INSURANCE I SUMMARY Unit 10 talks about Insurance It includes main points : Firstly, it talks about the definition of Insurance In financial definition, Insurance is a financial arrangement that redistributes the costs of unexpected losses Secondly, it talks about the operation of insurance system Insurer collects insurance premium from every participants in the system If loss occurs , Insurer gives compensation to Insured Insured pays insurance premium to Insurer If loss occurs , Insured gets compensation from insurance company If not, insured has no anxiety about a loss Finally, it talks about the difference between gambling and insurance Gambling contract will not enforce but insurance policy will enforce Contracts of insurance is a special class of contract in that the law requires the insured and the insurer, to exercise the utmost good faith towards each other II QUESTIONS What is insurance in financial definition? Insurance is the financial arrangement that redistributes the cost of unexpected losses What is insurance premium? Compensation? Insurance policy? 14 - Insurance premium: the amount of money insurer collects from insured and promise to compensate in case of losses - Compensation: the amount of money insurer pays to insured in case of losses - Insurance policy: financial agreement between insured and insurer How can an insurance system accomplish the redistribution of costs of unexpected losses? Insurer collects premium from every participants but very few participants suffer from unexpected losses Why are people willing to pay an insurance premium ? If loss occurs , Insured gets compensation from insurance company If not, insured has no anxiety about a loss UNIT 11 : MONEY AND ITS FUNCTIONS I SUMMARY Unit 11 talks about Money and its functions It includes main points : Firstly, it talks about concept of money Money is a commodity as a medium of economic exchange Express prices and values of goods Measure of wealth Circulates from person to person and country to country to facilitate trade Secondly, it talks about function of money Medium of exchange (The most important function of money) Measure of value Store of value Standard of deferred payments Finally, it mentions about different kinds of money They are commodity money and token money Commodity money The value in use of commodity money is about equal to the value of Token money The value in use of token money is higher than its cost of production 15 material contained in it Example: gold, copper Example: paper note II QUESTIONS What is the concept of money ? A commodity as a medium of economic exchange Express prices and values of goods Measure of wealth Circulates from person to person and country to country to facilitate trade What are functions of money ? What is the most important function in your opinion ? Medium of exchange (The most important function of money) Measure of value Store of value Standard of deferred payments What is unit of account? Medium of exchange ? Unit of account is the unit in which the price is quoted and account is kept Medium of exchange is anything used for payments for goods and services and in settlement of debts How is money functioned as a standard of medium of exchange ? Measure of value ? Standard of deferred payments ? Store of value ? Medium of exchange: Money is used to pay for goods and services and settle debts Measure of value: Money is used to measure value in its unit of account Standard of deferred payments: Money is used to pay after you buy something Store of value: Money is used to make purchases in the future This function can suffer from inflation What are kinds of money and differences between them? They are Commodity money and Token money Commodity money The value in use of commodity money is about equal to the value of material contained in it Token money The value in use of token money is higher than its cost of production Example: gold, copper Example: paper note 16 UNIT 12 : MONETARY POLICY I SUMMARY Unit 12 talks about Monetary Policy It includes main points : First, it talks about tools of monetary policy They are Reserve Requirement, Discount Rate and Open Marketing Operation Reserve Requirement is the percentage of customers’ deposit that commercial banks must keep in Central Bank Discount Rate is the interest rate commercial banks pays to Central Bank when commercial banks borrow from Central Bank / ( Fed charges to banks when they lend to commercial banks ) Open Marketing Operation is the government’s buying and selling government securities It takes shorter time to change money supply with OMO Second, it talks about types of monetary policy They are Expansionary monetary policy and Restrictive monetary poilcy Expansionary monetary policy is applied when economy grows slowly Restrictive monetary policy is applied when economy overheats II QUESTIONS What are major tools of monetary policy? What is the most popular tool ? They are - Reserve Requirement - Discount Rate - Open Market Operation (OMO) OMO is the major and most common tool because it is faster for central bank to change money supply on OMO than changing reserve requirement or discount rate Expansionary monetary policy ? Central bank uses expansionary monetary policy when the economy is growing slowly In this case, central bank decreases reserve requirement, decreases discount rate or buy more bonds This can increase money supply, increase aggregate demand Restrictive monetary policy ? 17 Central banks uses restrictive monetary policy when the economy is overheating In this case, central bank increases reserve requirement, increases discount rate or sell more bonds This will reduce lending capacity, so reduce money supply in the market UNIT 14 : FOREIGN EXCHANGE MARKET ( Forex ) I SUMMARY Unit 14 talks about the foreign exchange market It includes main points : First, it talks about Foreign exchange market definition and features Forex is the market in which national currencies are exchanged Features : - no physical meeting place - no fixed trading hours - communication instruments : telephone or computers Examples : London is the biggest foreign exchange market Second, it talks about types of transaction Spot transaction: sale of currency on the actual exchange date ( delivery date ) is business days after the value date Forward transaction: the actual exchange date is specified date in the future, more than days after the value date Finally, it talks about participants in the foreign exchange market Customers Regular people ( traveller, companies, banks, ) Buy or sell national currencies Market makers / dealer Brokers Banks Specialist companies Quote exchange currencies rate to buy or sell national Inform the buying / selling rate of nation currencies of 18 Have foreign currencies for business or travelling currencies banks around the world Make profit from difference between buying and selling rate of national currencies Get a commission II QUESTIONS What are some services of banks and how banks make profit ? Services of banks: lending, saving, exchange currency, payment, insurance, transfer money, Make profit from difference between interest rate of lending and saving, selling and buying rate, fee for services What is foreign exchange market ? Foreign exchange market is the market in which national currencies are exchanged What is OTC market ? A market which has : No fixed trading hours, trading 24 hours a day No physical meeting place Communication instruments: telephone or computer What are types of transactions in foreign exchange market ? A forward transaction ? Spot transaction ? types of foreign exchange transactions: Spot transaction and Forward transaction Spot transaction: the actual exchange date is business days after the value date Forward transaction: the actual exchange date is specified date in the future, more than days after the value date What is bid rate and offer rate ? Bid rate : The highest exchange rate at which a buyer is willing to buy a currency Offer rate : The lowest exchange rate at which a seller is willing to sell a currency What are types of participants in the foreign exchange market ? Customers Market makers 19 Brokers UNIT 15 : FINANCIAL MARKETS II QUESTIONS What is the main function of financial markets ? Transfer funds from lenders/savers to borrowers/spenders What is securities market? Securities market is the market in which bonds and stocks are exchanged What is debt market ? Equity market ? Debt market Equity market Debt instruments are exchanged Equities are exchanged kinds of debt: short, intermediate and long term long-term Borrower pays the lenders fixed interest rate at regular intervals until the maturity date Lenders share net income and assets of the borrowers basing on the percentage of shares Lenders don’t interfere in the company’s operation Lenders have a say in the company’s operation What is a primary market ? Secondary market ? Primary market Secondary market 20 New issues of a security are sold to initial buyers Securities previously issued are resold Not well known to public Well known to public Companies get new funds Companies get no new funds What is a debt instrument ? Short-term and long-term debt instrument ? Debt instrument is a contractual agreement by the borrower to pay the holder of the instrument fixed dollar amounts at regular intervals until a specified date, when a final payment is made > A debt instrument is short-term if its maturity is less than a year and long-term if its maturity is ten years or longer What is a money market ? Capital market ? Money market Capital market Short-term debts are exchanged Intermediate and long-term debts and equities are exchanged High liquid Less liquid 21 ... compensation from insurance company If not, insured has no anxiety about a loss UNIT 11 : MONEY AND ITS FUNCTIONS I SUMMARY Unit 11 talks about Money and its functions It includes main points : Firstly,... market forces ? They are demand and supply 10 What are some examples of economic relations ? Buyers – sellers Lenders – borrowers Employers – employees 11 Who is an economist ? They are people who... higher than its cost of production Example: gold, copper Example: paper note 16 UNIT 12 : MONETARY POLICY I SUMMARY Unit 12 talks about Monetary Policy It includes main points : First, it talks about