1、财经英语 Financial and Economic English,Review of Former Units - Unit 1,What is economics? the study of mankind in the ordinary business of life; examines that part of individual and social action which is most closely connected with the attainment and with the use of the material requisites of well-bei
2、ng the study of decision-making,economics material requisite decision making value judgment industrial relations social forces economic system historical background political forces,What is the basic economic problem? Scarcity which wants are to be satisfied first, and on how resources are to be all
3、ocated and combined to satisfy the wants of the community What and how much to produce, and how to distribute the goods and services produced,scarcity a resource which can be used for more than one purpose is in demand, and therefore a choice must be made on how to allocate the resource among the co
4、mpeting purposes allocate resources economic resources land, labor, and capital opportunity cost the want which was given up was the real cost of the want which was satisfied,price mechanism market mechanism the process by which prices rise and fall as a result of changes in demand and supply effect
5、ive demand a desire to obtain an article accompanied by the ability and willingness to pay for it at the price asked,Review of Unit 2,law of demand buyers are likely to buy more of an item as the price falls law of supply as prices rise, sellers would like to sell more and will, if it is possible, o
6、ffer a larger quantity for sale. demand curve supply curve demand schedule supply schedule,vertical axis horizontal axis cover cost make profit equilibrium price at which the buyer is prepared to buy the quantity which the seller is prepared to sell at that price, so the market is cleared and there
7、is no surplus and no shortage. consumer taste,price elasticity of demand measures how greatly a price change affects a change in demand the relative change in quantity demanded in response to a small change in price price elastic in demand price inelastic in demand have no suitable substitute, and p
8、eople are unwilling or unable to give up,Review of Unit 3,diminishing marginal utility or satisfaction the pleasure or satisfaction diminishes as they buy each extra unit, until they reach saturation point derived demand,consumer sovereignty the consumers are supreme and their decisions are all impo
9、rtant in deciding what shall be produce and how production shall be distributed. capitalist economy social cost initiative legislation,Unit Four Cost of productionEconomies and diseconomies of scale,New words,conceivable adj. that you can imagine or believe The disease could conceivably be transferr
10、ed to humans. conceive to imagine sth. God is often conceived of as male. conceive v. concept n. conception n. conceivable adj. (=/= inconceivable) conceptual adj.,altruistic adj. altruism altruist egoistic egoism egoist profit = total revenue total cost profitable adj. a profitable investment She s
11、pent a profitable afternoon in the library. profitability n. to increase profitability profitably adv. He spent the weekend profitably.,subtle adj. not very noticeable or obvious Shes been dropping subtle hints about what shed like as a present. subtly adv. forgo vt. to decide not to have or do sth
12、that you would like to have or do do without, give up, sacrifice, surrender, yield He agreed to surrender all claims to the property. yield The income return on an investment. resist,explicit implicit plicate 有褶的; outlay n. overspend expend invest outlay cost The flower cost me 50 yuan. take This bo
13、ok takes me 30 yuan. spend She spends 15 yuan on this pen.,accountant A professional person who performs accounting functions. Certified Public Accountant (CPA) A designation称号 given by the American Institute of Certified认证 Public Accountants (or The Chinese Institute of Certified Public Accountants
14、 CICPA ) to those who pass an exam and meet work-experience requirements. account for The recession accounts for the slow retail business accounting,interest 1. The charge for the privilege of borrowing money, typically expressed as an annual percentage rate. interest rate 2. The amount of ownership
15、 a stockholder has in a company, usually expressed as a percentage. Someone who holds more than 5-10% of the stock in a company is said to hold significant interest.,operation activity or work done in an area of business or industry: the firms banking operations overseas the UN peacekeeping operatio
16、ns operating expenses operations research reallocate sth (to sb/sth) Government funds were reallocated to the new local authorities. redistribute Wealth needs to be redistributed from the rich to the poor.,forfeit to lose sth or have sth taken away from you because you have done sth wrong: forfeitur
17、e The loss of an asset, or rights to an asset, as a result of defaulting on contractual obligations or conditions. derive derive sth from sth Derivation financial derivatives,lemonade orangeade lemon A very disappointing investment. Your expected return wasnt even close to being achieved. the market
18、 for lemons bookkeeper person whose job is to keep an accurate record of the accounts of a business 区别于accountant,supervisor supervise superintend presumably presume assume property Anything over which a person or business has legal title. Another way of saying real property, real estate or land,Exp
19、ressions,profit- maximizing output input keep track of financial statement negative social cost,Thinking while reading the text,1. what is the relationship between a firms total revenue, profit, and total cost? 2.what is the relationship between a firms total cost, average total cost, and marginal c
20、ost?,3.give an example of a social cost which is paid for by society but not by the firm because of the result of production by the firm, explain. 4. discuss the cost of your going to college.,Structure,What are costs? Total Revenue, Total Cost, Profit Costs as Opportunity Costs Explicit and Implici
21、t Costs Costs of capital as Opportunity Cost Economic Profit versus Accounting Profit The various measures of costs Fixed and Variable Costs Average and Marginal Cost Private costs and Social costs,Successful managers are certainly aware that it is the level of cost relative to revenue that determin
22、es the firms overall profitability. It is conceivable that Helen started her firm because of an altruistic desire to provide the world with cookies or, perhaps, out of love for the cookie business. More likely, Helen started her business to make money. Economists normally assume that the goal of a f
23、irm is to maximize profit, and they find that this assumption works well in most cases.,Total Revenue and Total Cost,Total Revenue The amount that the firm receives for the sale of its output. It equals the quantity of output the firm produces times the price at which it sells its output. Total Cost
24、 The amount that the firm pays to buy inputs.,A Firms Profit,Profit is the firms total revenue minus its total cost.Profit = Total revenue - Total cost,Costs as Opportunity Costs,A firms cost of production includes all the opportunity costs of making its output of goods and services.,Explicit and Im
25、plicit Costs,A firms cost of production include explicit costs and implicit costs. Explicit costs involve a direct money outlay for factors of production. Implicit costs do not involve a direct money outlay.,Economic Profit versus Accounting Profit,Accounting profit = total revenue minus total expli
26、cit costs Economic profit = total revenue minus total costs (including explicit and implicit costs) Accounting profit ignores implicit costs, so its higher than economic profit.,Normal profit (zero eocnomic profit),For a business to be profitable from an economists standpoint, total revenue must cov
27、er all the opportunity costs, both explicit and implicit. normal profit is the minimum profit necessary to keep a firm in operation zero economic profit signifies there is just enough total revenue to pay the owners for all explicit and implicit costs.,The Various Measures of Cost,Costs of productio
28、n may be divided into fixed costs and variable costs.,Fixed and Variable Costs,Fixed costs are those costs that do not vary with the quantity of output produced. They are incurred even if the firm producers nothing at all. Variable costs are those costs that do change as the firm alters the quantity
29、 of output produced.,Average costs,divide the firms costs by quantity of output it produces. Average total cost = Total cost / QuantityATC = TC / Q,Marginal Cost,The marginal cost is the amount of that total cost rises when the firm increases production by 1 unit of output. Marginal cost helps answe
30、r the following question: How much does it cost to produce an additional unit of output?,Marginal Cost,Private cost vs. Social cost,Private cost are the sum of the explicit and implicit costs that incurs. Social cost are those that society in general bears because of the firms activities, it include
31、s the private costs of a firm and it also includes costs paid for by society but not by the firm ,even through such costs were result of production by the firm.,Additional text,factory泛指用机器大批量生产产品的厂家。 plant,尤指钢铁厂，电厂，军工厂等大型企业。 firm公司；商行；商号。尤其用于口语 firm 是整家“公司”， factory是公司里的“工厂” plant是工厂里不同的“工场”。 Firm
32、AAA has 5 factories in China and the factory in Guangdong has 6 plants.,Learning curve effect the amount of inputs, such as labor, and associated costs required to produce each unit of output decreases for successive increases in the cumulative output of the enterprise. overhead costs include such a
33、s administrative costs and indirect expenditures,Statistical studies have shown that both the relative variability in profits and the relative frequency of bankruptcy and securities default tend to vary inversely with the size of firms. minimum efficient scale the smallest scale at which minimum costs per unit are attained, economies of scale are present,Definition of Accounting,
