English Learning for Beginners: Everyday Economics
Dialogue
Alice: Hey Bob, what are you doing with all those fancy snacks? Are you hosting a party?
Bob: Oh, hi Alice! No party, just stocking up! Look, these super-crunchy chips were on sale, buy one, get one free!
Alice: “On sale,” huh? Is that why you bought ten bags? Bob, your shopping cart looks like a snack invasion!
Bob: Well, when the price goes down, I buy more! It’s basic economics, right? My demand for chips is very high!
Alice: You’re right about demand, but what about supply? If everyone buys them when they’re cheap, the store might just put the price back up because demand is so high!
Bob: No! Don’t tell me that! My snack strategy!
Alice: It’s called supply and demand, Bob. When supply is high or demand is low, prices usually fall. When demand is high and supply is low, prices rise.
Bob: So, if I eat all these chips quickly, I’m increasing demand, which might make future chips more expensive for me? This is too much for my brain.
Alice: Exactly! You’re an economic force, Bob. Every decision you make, like buying those chips, has an economic impact.
Bob: This is a lot to think about. I just wanted a tasty treat.
Alice: Welcome to the economy, my friend! Even choosing which brand of coffee to buy or deciding if you really need that new gadget is an economic decision.
Bob: So, my decision to share some of these chips with you could be a smart economic move? To reduce my personal demand?
Alice: Very smart, Bob! And a very kind one too. Maybe we can discuss inflation over a bag of cheesy puffs?
Bob: Inflation? My wallet is already deflating just thinking about it!
Alice: Don’t worry, we’ll start slow. One chip at a time.
Current Situation
Economics might sound like a complicated subject studied by professors, but it’s actually a huge part of our everyday lives! For beginners, understanding economics simply means understanding how people make choices because resources are limited. Every time you decide to buy something, save money, or even choose to walk instead of taking a bus, you are making an economic decision. Things like “sales,” “prices,” “buying,” and “selling” are all basic parts of economics that you encounter constantly. Even deciding how to spend your time is an economic choice!
Key Phrases
- on sale: When an item is offered at a reduced price for a period of time.
“I bought this new jacket because it was on sale for half price.”
- stocking up: Buying a large amount of something to have enough for future use.
“My mom always stocks up on toilet paper when there’s a good deal.”
- basic economics: The fundamental principles of how economies work, often simplified for understanding.
“Saving money for the future is a principle of basic economics.”
- supply and demand: An economic model that explains how prices are determined in a market based on how much of a product is available (supply) and how much consumers want it (demand).
“When the new phone came out, high demand and low supply made its price very high.”
- economic decision: A choice made by individuals, businesses, or governments about how to use scarce resources.
“Choosing to study instead of working extra hours is an economic decision about time.”
Grammar Points
- Simple Present Tense (for facts and habits):
We use the simple present tense to talk about things that are generally true, facts, or regular habits. In the dialogue, Alice uses it to explain economic rules.
“When the price goes down, I buy more.” (A general truth/habit for Bob)
“When supply is high or demand is low, prices usually fall.” (An economic fact)
“Every decision you make has an economic impact.” (A general truth)
- “Is that why…?” (Asking for a reason):
This phrase is used to ask for the reason behind something that has already been observed or mentioned. It’s a common way to connect an observation to its cause.
“You’re tired. Is that why you went to bed late?”
“The shop is closed. Is that why we can’t buy coffee?”
- Conditional Sentences (If… then…):
We use “if… then…” (often “then” is implied, not explicitly stated) to talk about a condition and its result. This is very common in economics to explain cause and effect.
“If everyone buys them when they’re cheap, (then) the store might just put the price back up.”
“If it rains tomorrow, I will stay home.”
“If you study hard, you will learn a lot.”
Practice Exercises
Exercise 1: Fill in the Blanks
Choose the best key phrase to complete each sentence.
(on sale, stocking up, basic economics, supply and demand, economic decision)
Exercise 2: Match the Question to the Answer
Read the questions and find the correct answer from the list.
Questions:
Answers:
a) Prices usually rise.
b) He bought them because they were on sale.
c) It’s a choice about how to use limited resources.
Exercise 3: Put the words in the correct order to make a sentence.
Answers:
Exercise 1:
1. on sale
2. stocking up
3. supply and demand
4. economic decision
5. basic economics
Exercise 2:
1. b) He bought them because they were on sale.
2. a) Prices usually rise.
3. c) It’s a choice about how to use limited resources.
Exercise 3:
1. When supply is high, prices go down.
2. Alice called you an economic force.
3. Is that why you buy a new phone?
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