A) by b) in c) -

3. Use the vocabulary of the text to complete these sentences.

1. An individual who buys products or services for personal use and not for manufacture or resale is …

a) a consumer

b) a merchant

c) an exporter

2. In economics, … is the amount of goods and services by a firm, industry, or country.

a) trade

b) output

c) profit

3. A fundamental economic concept that describes the total amount of a specific good or service that is available to consumers is …

a) demand

b) supply

c) a law

4. Adam Smith saw the creation of … as the combination of materials, labor, land, and technology in such a way as to gain profit.

a) costs

b) society

c) wealth

5. The Peugeot engine has … its competitors this season.

a) competed

b) benefited

c) outperformed

6. I didn’t want to … him or his company.

a) rival

b) compete

c) produce

Talking Points

1. Economic thought may be roughly divided into three phases:

· Premodern (Greek, Roman, Arab);

· Early modern (mercantilists, physiocrats);

· Modern (since Adam Smith in the late 18th century).

What new facts have you learnt about it from the text? Can you add anything else?

2. Comment on the quotation.

“Labor was the first price, the original purchase - money that was paid for all things. It was not by gold or by silver, but by labor, that all wealth of the world was originally purchased.” Adam Smith.