Đề cương ôn thi tiếng anh chuyên ngành kinh tế phần 2

Unit 1: Economics
1. Definitions
- Economics is the study of how people choose to use resources.
- Economics is the study of the production and consumption of goods and the
transfer.
- Resources include the time and talent people, land, building, equipment and so on
and the knowledge of how to combine them.
+ Resources is limited.
2. 2 types of economics
- Microeconomics : focuses on the actions of individual and industries, like the
dynamics between buyers and sellers, borrowers and lenders.
- Macroeconomics: analyzing the economic activity of an entire country or the
international marketplace.
3. Theories
Adam Swith’s
theory

Marxism theory

Theory of
Keynesian School

- Swith believed that people who atced in their own selfinterest produced goods and wealth that benefited all of
society.
- He believed that government should not restrict or
interfere at maxium.
Why: They could regulate themselves and, thereby, produce
wealth at maxium efficiency.
- State that capitalism will eventually fail.
- He believed that such exploitation leads to social unrest
and class conflict.

- He theorized laborers should own and control the means
of production.
- Describes how government can act within capitalistic
economics to promote economic stability.
- Calls for reduced taxes and increased government
spending when the economy becomes stagnant, and
increased taxes and reduced spending when they economy
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becomes overly active.
- This theory strongly influences U.S economic policy
today.
4. Role of economics
- Economics shape the world.
- Through economic, people and countries become wealthy
- Styding economics can help one understand human thought and behavior.
Questions:
1. What does economics study?
2. What are some main idea’s of Adam Swith’s theory?
3. What are some main idea’s of Mark’s theory?
4. What are some main idea’s of Keyness’s theory?

Unit 2: Economics systems
1. Free market economy
-Free market system is an economics system in which the market is regulate by the
law of supply and demand.
-Business firms compete freely.
-No direct government intervention.
-Government influence the economy though its fiscal and budgetary policies.

2. Planned economy
Planed economy is an economic system where by the structure of the market is
deliberately planned by the state.
-There is no real competition.
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- Production and consumption quotas are fixed before hand.
- Direct government intervention.
3. Mixed economy
Mixed economy is an economics system in which some goods and service are
produced by the government and some by private enterprise.
- It lies between the market economy and the planned economy.
- Most economics now are mixed.
Questions:
1. What is a market economy?
2. What is a planned economy?
3. What is a mixed economy?
4. What are differences between a market economy and a planned economy?
Free mark economy
+ The market is supposed to be regulate
by the law of supply and demand.
+ Free competition.
+ No direct government intervention.

Planned economy
+ Is deliberately planned by the state
+ No real competition
+ Direct government intervention.

Unit 3: Microeconomics
Microeconomics is a branch of economics that deals with the how consumers and
firms behave while making decisions on the allocation of scarce resources.
Limits: + Limited incomes
+ Limited number of hour in a week
+ Limited budget
Allocation decisions:

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+ In a planned economy: Allocation decisions are made mostly by the
government.
+ In modern market economics: consumers, workers, and firms have much more
flexibility and choice.
1. Making optimal trade-off
* Consumer theory describes how consumer, based on their preferences maximize
their well-being by making some trade-off.
-Trading-off the purchase of more of some goods with the purchase of less of
others.
- Trading- off current consumption for future consumption.
* Works
- Trading-off working now with continued education.
- Trading-off their choice of employment (working for small companies or large
corporations).
- Trading-off labor for leisure.
* Firms
- Trading-off producing some kinds of products instead of the orthers.
- Trading-off hiring more workers, building new factories or buy new machines.
Theory of firm describes how these trade-off can be best made by firms.

2. The role of price
- All of the trade-offs made by consumers, workers, and firm are based on the
prices.
- How are prices determined?
+ In a centrally planned economy, prices are set by the government.

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+ In a market economy, prices are determined by the interration of consumers,
workers, and firms.
3. The contral role of markets.
The interaction of consumers, workers, and firms in market detemine the price of a
good.
Questions:
1. What does microeconomics study?
2. What are trade-off made by consumers?
3. What are trade-off made by workers?
4. What are trade-off made by firms?

Unit 4: Macroeconomics
Monetary policy: chính sách tiền tệ
Fiscal policy: chính sách tài chính
Economic landscape: bối cảnh nền kinh tế
Supervise : giám sát, quản lý
Open market operation: hoạt động thị trường mở
The ministry of finance : bộ Tài chính
Government spending : chi tiêu của chính phủ
1. Definition
Macroeconomics is a branch of economics that studies the economic activity of an

entire country and economy wide phenomena.
2. The goal of macroeconomics

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Bird’s eyes
Provide
Marco

view of country’s
Economic growth

economic landscape

Inflation
And so on
3. Two main macroeconomic policies
Monetary policy
- Control a nation’s money supply

Fiscal policy
- Control a government’s revenue and
spending.
- Is in the hand of the ministry of
finance.
- Main tools are government spending
and taxation.

- Is supervised by each country’s central

bank.
- Main tools are reserve requirement
discount rate, and open market
operations.

The basic objectives of these 2 main macroeconomis policies are:
- To promote economic growth: thúc đẩy tăng trưởng kinh tế.
- To keep inflation under control: giữ lạm phát dưới tầm kiểm soát
4. Differences between Micro and Macro
Micro
- Is the study of individual and business
decisions.
- Focus on supply and demand and other
forces that determine the price.

Macro
- Look at higher up country and
government decisions.
- Centerson economy-wide phenomena
such a GDP, national income, inflation,
etc,….
- Take a top-down approach: Tiếp cận từ
trên xuống.

- Take a bottoms-up approach: Tiếp cận
1 cách chi tiết.

5. Relationship between Micro & Macro
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- They are interdependent and complement one another.
- They provide fundamental tools for any finance professional.

Questions
1. What does macroeconomics sudy?
2. What are difference between micro and macro.

Unit 5: Demand and supply
A. What is Demand?
All quantities of goods and services buyers are willing and able to buy at various
prices.
1. Demand describes how price influences buyers behavior.
- If the price increases, the quantity a buyer will purchase will decrease.
- If the price decreases, the quantity a buyer will purchase will increase.

2. Shift factors of demand
- Society’s income
- Prices of other goods
- Expectation
- Tastes
3. The demand curve
* A change in price causes a movement along a give demand curve
A decrease in price will increase the quantity demand.
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* A change in one of the shift factors will shift the demand curve to the left or to
the right.
A change in income Demand increases or decreasesDemand curve moves to the

right or left.
When society’s income is higher, buyer are willing and able to buy more. Demand
will increase, the demand curve shifts to the right. On the other hand, when
society’s income is lower, buyer are willing and able to buy less. Demand will
decrease, the demand curve moves to the left.
B. What is supply?
1. The seller will be influenced by price when deciding how much to sell at
various prices.
- As the price of a good or service rises, the quantity supplied will increase.
- As price decreases, the seller will produce less and the quantity supplied will
decrease.
2. The shift factors of supply
- Change in prices of inputs
- Technology
- Taxes
- Supplier’s expectations
3. The supply curve
* A change in price causes a movement along a give supply curve
+ Price increase causes quantity supplied increase
+ Price decrease causes quantity supplied decrease
* A change in one of the shift factors will shift the supply curve to the left or to the
right.

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A change in prices of inputsSupply decreases or increases Supply curve moves to
the right or left.
When the price of inputs increases, producers are willing and able to produce less,
supply will decrease. As the result, the supply curve will move to the left. On the

other hand, when the price of inputs decreases, producers are willing and able to
produce more. Supply will increase, the supply curve will move to the right.
4.
Demand (Supply)
-All quantities of good and service
buyers (sellers) are willing and able to
buy (sell) at various prices.
- Is influenced by a change in one of
shift factors.

Quantity demand (Quantity supply)
- The specific quantity of good and
service buyers (sellers) are willing and
able to buy (sell) at a certain price.
- Is influenced by a change in price.

Shift factors change
Make the entire demand/supply curve
move to the right or to the left.

Price change
Cause a movement along a give
demand/supply curve.

Equilibrium: Điểm cân bằng
- Equilibrium is a situation in which there is no tendency for change
- Make in equilibrium when there is no reason for the market price of product to
rise or to fall.
- It occurs where quantity demanded equal quantity supplied.
Questions:

1. How does the price of a good influence its quantity demand and quantity
supplied?
2. What are shift-factors of demand? Analyzing one of shift-factors?
3. What are shift-factors of supply? Analyzing one of shift-factors?

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Unit 6: Public finance
face value: mệnh giá in trên trái phiếu, cổ phiếu.
federal debt: Nợ liên bang.

Public Finance is concerned with how a government can rise and spend its funds.
1. Federal Budget
Federal Budget is the amount of money that is avaible for a federal government to
spend in a particular year.
- Federal tax revenues mainly come from 3 major sources.
+ Individual income taxes: thuế thu nhập cá nhân
+ Payroll taxes: thuế sử dụng lao động
+ Corporate income taxes: thuế thu nhập doanh nghiệp
Individual income taxes
A tax paid by people on
the money they earn.

Corporate income taxes
A tax that a company has
to pay on its profits.

Federal funds

Payroll taxes
A tax imposed on wages,
salaries of employees and
employers.
Trust funds

- Federal funds are general revenues wich include
income taxes and corporate taxes.
- Fund the government in general.

- Trust funds are shaped
by payroll taxes.
- Pay for very specific
programs such as social,
Security and Medicare.

2. Borrowing
When? When the government spends more money than its takes in from tax
revenue.

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Why? Beacause they want to make up the difference
How? By issuing and selling treasury bonds or other types of securities.
What is the treasury bond?
Treasury bond is a debt security, issued by the government of a nation.
- Anyone can buy.
- It has fixed interest rate.
- The price of a bond is less than the worth and a bond is mature on the date at

which it is worth its face value.
3. Federal Debt
What is the Federal Debt?
The federal debt is the sum of the debt held by the public plus the debt held by
federal account.
Debt held by the public
- Debt held by the public is total amount
the government owens to all of its
creditors in the general public.
- Creditors:
+ International investors
+ Domestic private in vestors
+ Federal reserve bank
+ State and local government
- Two-Thirds of the federal debt is debt
held by the public.

Debt held by federal account
- Debt held by federal account is the
amount of the money that the treasury
has borrowed from itself.
- Creditors: Itself

- One-Third of the federal debt is debt
held by federal account.

Questions:
1. What are two types of funds from taxation?
2. What is the federal debt?
3. What are main sources of government revenues?

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Unit 7: Fiscal policy
shrinks = Slow down:
1. Definition
Fiscal policy is a government policy related to taxation and public spending.
2. Aims
Maintain: + Economic growth
+ High employment
+ Low inflation
3. Tools
- Government spending
Increase spending Create jobs Create income People spend more on purchase
Economy grows
- Taxation
Increase taxes Less income People spend less on purchase Economy shrinks.
4. Types
- Expansionary fiscal policy: CSTK nới lỏng
+ Definition: Fiscal policy is expansionnary when taxation is reduced or public
spending is increased.
+ Expansionary fiscal policy might occur when a government feels its economic is
not growing fast enough or unemployment is too high.
+ Aims: It’s used to create jobs, increase spending & demand and develop the
economy.
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- Contractionary fiscal policy: CSTK thắt chặt
+ Definition: Fiscal policy is contractionary when taxation is increased or public

spending is reduced.
+ Contractionary fiscal policy might occur when a government feels its economy is
growing too fast or inflation is high.
+ Aims: It’s used to decrease spending & demand, put pressure on price and slow
down the economy.
What?

Expansionary fiscal policy
Contractionary fiscal policy
when taxation is reduced or public when taxation is increased or
spending is increased.
public spending is reduced.

When?

The economy is not growing fast
enough or unemployment is too
high.

The economy is growing too
fast or inflation is high.

What for?

Create jobs, increase spending &
Decrease spending & demand,
demand and develop the economy. put pressure on price and slow
down the economy.

5. Factors

* Inside factors:
- The level of economic growth or unemployment likely in the future.
- Whether or not to run a budget deficit.
- Political considerations.
* Outside factors:
- Fiscal policies of other countries.
- The requirements of IMF.
6. Deficit spending
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Deficit spending is spending funds obtained by borrowing or printing instead of
taxation.
Deficit spending is helpful
Deficit spending is harmful
+ When unemployment is high or
+ When unemployment is low or the
economy is slowing down.
economy is overheating.
• Government undertakes project to
• A deficit may result in rising price
create jobs.
or inflation.
• More money is being pumped
• Additional government spending
into the economy, the economy
creates more competition for
will then expand.
scarce workers and resources.
Deficit spending can be financed in 2 ways:

By borrowing
If the government borrows money, the
interest rate may rise.

Printing more money
If the government prints more money,
price and inflation may rise.

Questions:
1. In what way (How) do government spending and taxation affect the economy?
2. What is deficit spending? How is deficit helpful or harmful for the economy?
3. What is expansionary fiscal policy?
4. What is contractionary fiscal policy?
5. What factor should be considered in making decisions on the fiscal policy?

Unit 8: Taxation
a compulsory fee:
Expenditure:
Undeclare: không công khai
Tax-deductible: khấu trừ thuế
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1. Definition of taxation
Taxtion is a compulsory fee that individuals or corporations must pay to the
government.
2. Functions
Main functions
- Raise revenus to finance government expenditure
Other functions:

- Dissuade people from consuming some kinds of products
- Encourage capital investment

3.
Advantages
Disadvantages
Progressive tax (income tax) is designed - Progressive tax is always high
to redistribute wealth and income.
- Regressive tax (sales tax) is not really
fair.
- Business profits are generally taxed
twice
4. Tax evasion
Means making false or no declaration to the tax authorities sefl-employed people
undeclare their income.
Many people undeclare their part-time jobs.
Avoiding tax on salary
Tax avoidance means reducing the amount of tax you pay to a legal minimum.
To reduce income tax liability, employers give
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- Perk highly paid employees lots of perks
+ Company cars
+ Free health insurance
+ Subsidized lunches
- Tax shelters: individuals postpone the payment of tax through
+ Life insurance policies
+ Pension plans
+ Other investments

- Tax-deductible: the income on which tax is calculated can be subtracted through
+ Donations
+ Charities
Avoiding tax on profits
- Tax loss: Companies bring forward capital enpanditure so that at the end of the
year all profits have been used up.
- Laundering money (rửa tiền): Criminal organizations tend to pass money through
a series of company in very complicated transactions to disguise its origin from the
inspectors and the police.
- Tax havens: Multinational companies often sepup head offices in countries where
taxes are low.
Questions:
1. What are function of taxations?
2. What are ways to avoid tax?
- Way to avoid tax on salaries.
- Way to avoid tax on profits?
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3. What are aways to evade tax?

Unit 10: Insurance
1. Definiton of insurance: Insurance is a financial arrangement that redistributes
the cost of unexpected losses.
2. Role of insurance
- Predict lossess in advance
- Finance the cost of losses: bù đắp chi phí của tổn thất
- Redistribute the cost of losses in advance: phân phối lại chi phí của tổn thất trước
3. Operating principles of insurance: Nguyên tắc hoạt động của bảo hiểm
- An insurance system collects premium (phí bảo hiểm) from participants in the

system.
- It gives a promis that the insured (người được bảo hiểm) will be compensated
(bồi thường) in the event of a loss.
- It redistributes the cost of losses from the unfortunate few members to all the
members of the insurance pool (=fund).
4. Benifits to the insured
- The insured are relieved of the uncertainly about a loss.
- The insured are compensated when the loss actually occurs
- If no loss occurs during a year, the insured still eliminate anxiety about a loss.
5. Insurance contracts
- Insurance contracts are legal
- Insurance contracts will enforce (khả thi)
- Insurance contracts from a special class of contract in that the law requires parties
to them, the insured and the insures, to exercise the utmost (tối đa) good faith
towards each other (tin tưởng lẫn nhau).
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Questions:
1. How does the insurance system operate?
(= What is the operating principle of insurance?)
2. What benefits does the insured receive from the insurance system?

Unit 11: Money and its functions
- Concept of money: money is a commodity accepted by general consent as a
medium of economic exchange.
- Function of money:
+ Medium of exchange
+ Measure of value: thước đo giá trị
+ Store of value: kho lưu trữ giá trị

+ Standard of Defferred Payment: bảng vị thanh toán chậm
1. A medium of exchange is anything that is widely accepted in payment for good
and services and in settlerment (=payment) of debt.
- A as medium of exchange, money is used to exchange good and services.
- Money is the most commor medium of exchange.
2. Money as a Measure of Value
- Money is used to measure value of goods and services in unit of account.
- The unit of account (đơn vị tính tốn) is the unit in which prices are quoted and
account are kept.
3. Money as a store of Value
Money is used to make purchase in the future.

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4. Money as a standard of Deferred Payment
Money is used to settlerment debt/ pay for debt (thanh toán nợ) in the future
Commodity Money
- Is a useful good that services as a
medium of exchange.
- The value of CM is about equal to the
value of the material contained in it.
- Material: gold, silver,…

Token Money
- Is a means of payment.
- The value or buying power greatly
excrods its eist of production.
- Material: metal, paper, plash polymer,
…

=> Chức năng nào quan trọng nhất: Money as a medium of exchange makes easier,
quicker, more conseniences, without that function other function don’t work.
Questions:
1. Name function of money? Analyyne are of the function?
2. What are two type of money?

Unit 12: Monetary policy
1. Denifition
Moneytary policy is a government policy which controls a nation’s money supply
and supervised by each country’s central bank.
2. Objectives (mục tiêu)
- Maintain price stability
- Exchange stability
- Full employment & maxium output: số lượng tối đa.
- Economic growth

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3. Quantities tools of Monetary policy ( công cụ định lượng của CSTT)
* The reserve requirment
- The reserve requirment (RR) is the perantage the Fed sets ( để lại) as the minium
amount of resenes as bank must have
When Fed



 Money Supply



Money Supply

RR

When Fed



RR
* The discount rate ( DR)
- The discount rate is the rate of interest the Fed charges (tính) for those loans
(khoản vay)
When Fed



 Money Supply



Money Supply

DR

When Fed



DR
* Open market operation
- Open market operation are the End’s buying and selling government security
(mua & bán TPCP của NHTW)
Fed



Money Supply

buys bords

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Fed



 Money Supply

sell bords
4. 2 typers of monetary policy
Expansionary monetary policy
- MP is expansionary when the money
supply is increased.
- Expansionary MP might occur when
the economy is slowing down.
- The central bank increases the money
supply by lowering reserve equirements,

dropping discount rate or buying more
bonds.

Contractionary monetary policy
- MP is restrictive when the money
supply is decreased.
- Restrictive MP might occur when the
economy is overhesding.
- The central bank decreases the money
supply buy raising reserve requirements
increasing discount rate, or selling.

Questions:
1. What are those tool monetary policy?
2. What is Expansionary monetary policy ?
3. What is Restrictive monetary policy ?

Unit 14: The foreign exchange market
(Thị trường trao đổi ngoại hối)
1. Definition
The foreign exchange market is the market in which national currencies such as
dollars, pease, deutsche market, yen, francs and others are exchangeed.
2. Function
- The foreign exchange market is an over-the-counter market, the primary
communication instruments being the telephone and the computer.

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- The foreign exchange market enables banks and international corporations to

trade foreign currencies in large amounts.
- The foreign exchange market trades 24 hours a day.
London-The world’s largets foreign exchange centre.
- London’s trading position arises partly from the large volume of international
financial business generated here.
- London aslo benefits from its geographical location which enables it to trade
among different time zones.
3. Types of transaction
Spot transactions (ngay tức thì)
Spot transactions are undertaken for an
actual exchange of currencies two
business days later.

Forward transaction
Involve a delivery date further into the
future, possibly as far as a year or more
ahead.

4. Participants
- Customer (multinational corporations)
They require foreign currencies forcross border trade or investment business
- Market makers (bank) they quote
+ They quote buying and selling rate for curencies
+ They earn profits from the difence between buying and selling rate
- Brokers (specialist companies) (môi giới)
+ They act as intermediaries between bank
+ They contact the bank throughout the world to find the best dealing rate.
+ They charge a commision for their services.

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Questions:
1. What is the concept and the function of the Forex market?
2. What are participants in the Forex market?

Unit 15: The Financial markets
1. Definition
A market in wich financial instrument (such as equities, bonds, curremcies, etc,…)
are traded.
Indirect finance
Funds
--------------

Financial

Funds

Intermediaries

-------------------

Lenders-savers
- Household
- Business firms

Borrowers-spenders
Funds
---

- Government

Financial
market

Funds
------

Direct finance

- Foreigners

- Business firms
- Government
- Household
- Foreigners

2. Debt and equity markets
Debt market
- Debt market: a financial market in
which debt instruments (bonds,
mortgage) are trade.
- Debt instrument: Short-term,
intermediate-term and long-term.
- Debt holders: receive predeteminded
fixed interest rate.

Equity market
- Equity market: a financial market in
which equity instruments such as

common stocks are trade.
- Equity instrument: long-term securities
- Equity holders: receive periodicial
payments, called dividents.
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Owning a corporation’s equities
Advantages: - Equity holder benefit directly from any increases in the firm’s
profittability or asset value.
- Equity holder have the right to vote on important issues of the
company.
Disadvantages: Equity holder are residual claimants.
3. Primary and secondary markets
Primary market
- A financial market in which new
securities are issued and sold to initial
buyers.
- Not well known to the public.
- Function: raise fund for issuing forms.

secondary market
- A financial market in which previously
issued securities are resold to investors.

Exchange
- All transactions are made in one
central location.
- The NY&American stock exchange.

OTC markets
- All transactions are made in different
location.
- The foreign exchange market.

Money market
- Is a financial market in which only
short term debt instruments are traded.

Capital market
- Is a financial market in which longer
term debt and equity instruments are
traded.
- >= 1 year
- Less liquid
- Bigger fluctuation in price
- Users: financial intermediaries.

- < 1 year
- More widely traded, more liquid.
- Smaller fluctuation in price.
- Users: corporations and banks.

- Well know to the public.
- Function:
+ Maked in eassier and quicker to sell
financial instruments to raise cash.
+ Determine the price of fresh shares in
primary market.

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Questions:
1. What is the difference between Debt market & Equity market?
2. What is the difference between Primary market & Secondary market?
3. What is the difference between Money market & Capital market?
4. What are the advantages and disadvantages of owning a corporations equity?

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