1 Unit 1 Economic activity

Lesson A What are economic activities?

Refreshing

We often do things like trading, studying for an accounting test, gardening … for various
purposes. An activity is something we do or the state of doing something. Sometimes we
do things for fun or pleasure, other times we do things because we want to earn money
or because of other compelling reasons.

1. Think of things you normally do and write a few notes about them.
2. Share your notes with your classmates. Is there anything interesting or odd about
yourclassmate’s notes?

I. Vocabulary
1. Label the pictures below. Use the words/expressions in table B below the pictures.

A B C

D E F

G H I
 J K L

These pictures come from google.com/images

Table B
1. Classroom exercise 2. Recording financial accounts 3. Selling books 4.Watching
soccer 5. Swimming at home 6. Driving own car 7. Money laundering 8. Dancing
9.Thinking about exams 10.Charging interest rates 11.Racing 12.empty classroom

2. Classify the activities in table B whether they are Economic or non-economic activities.
3. Pick up an activity that seems strange to you. Say why you have chosen it.

II. Reading
Read the text below and answer the questions below it.
What are economic activities?
Economic activities are a set of activities carried out by human beings to satisfy their
needs. These activities are production, distribution, exchange, investment and
consumption of goods and services. They are the basic economic activities of life. Every
society wants to control these activities because the resources available to man are finite. This
means that the resources used in the production are not always enough. In order to minimize
scarcity, societies need to decide on how to use its scarce resources.
People undertake an economic activity in order to earn income, money, wealth for
their life, and to guarantee satisfaction of their wants with limited and scarce means.In
this way, people produce either goods or services.

Questions
1. What is an economic activity?
2. What are the basic economic activities mentioned in the text?
3. Name what can people produce.
4. Why do people need to work?
5. Why does a society need to make choices regarding use of resources?
 III. Speaking
Read conversation between Sandro and Seissa.

Sandro: Hi, could you tell me a little about your typical activity?
Seissa: Oh yes, I like fishing. I normally go fishing with my cousin on Saturdays in the
afternoon. When the fishing is good, we sell part of the fish to our neighbor.
Sandro: Oh, really?

1. Think of one activity you normally do and tell your classmate about it.

IV.Listening
You are going to listen to an extract from McArthur on economic activities. As you listen,
say whether the statements below are True, False, or Not Mentioned.
1. Most people work in order to get rich.
2. Some goods like milk and maize are produced on farms.
3. Only schools provide services.
4. No one can provide both goods and services
5. A collection of economic activities make up an economic system.

V. Writing
Grammar: Present simple (Positive)

We normally use Present Simple to talk about daily routines or facts.

1. Positive
In he/she/it positive form of the present simple, we add ‘s’ to the
verb.
e.g. He works hard. She likes travelling. The bank opens at 8 a.m.

This can be summarized as it follows:

For he/she/it
Verb Rule Example
Most verbs Add s Maria loves cakes.

Verb ends in a consonant +y Change y to ies He cries a lot.

Verb ends in: ch, sh, s, x, z Add es He watches TV a lot.
Verb do and go Add es He does his job.
Verb Have has She has two sons.
 Exercise 1
The sentences below are not correct. Identify the problems and correct them.
1. The classroom look empty. _________________________________________________________
2. A men buys two books. _________________________________________________________
3. The accountant calculate interest rates. ________________________________________________
4. The bookkeeper record the accounts. ________________________________________________
5. She swim fast. _______________________________________________________________
6. They always comes late to school. _______________________________________________
7. The baby cry a lot. ______________________________________________________________
8. The department have many accountants. _______________________________________________

For I/we/you/they we do not add anything to the verb.

For I/we/you/they
Rule Example
I study at ISCAM.
The verb does not change its basic You play tennis.
form. We like summer.
Factories produce goods.

Exercise 2
The sentences below are not correct. Identify the problems and correct them.
1. Societies needs economic resources. __________________________________________
2. Every society want to control economic activities. _____________________________________
3. People undertakes an economic activity. __________________________________________
4. A Person earn money from their economic activity. _______________________________________
5. You makes money by selling potatoes. ___________________________________________
6. I wants to be an accountant. _____________________________________________________
Notice that verb to be is an exception:

I am (‘m)
a
He/She/It is (‘s) student.
We/ You/ are (‘re) students
They

Exercise 3
Check the sentences. Where there is a problem, fix it.
1. Good management are important in business.
2. She is an intelligent student but she doesn’t get good marks.
3. I is a good receptionist.
4. They’s from Inhambane Province.
5. They’a from West Street.
6. She’re in her office now.
7. You’s the right person for this post.
8. The company are making a profit.

Exercise 4
Complete the sentences correctly using the verbs in the box below.

study, type, clean, send, fly, arrive, cause, have, drive, wear

1. All employees uniform in this factory.

2. The LAM flight company to many countries in the world.
3. He ________ at ISCAM.
4. My secretary __________ ten letters a day.
5. I often _________ e-mails to my family who live abroad.
6. Bad weather ________ many accidents every year.
7. They _______ to work. They have their own car.
8. You _________ many doubts about our project, why?
9. I always _______ the office every day. Cleanliness is our motto.
10. They never _______ to work on time.
Crossword Puzzle: Find the missing words in the puzzle.
Unit 1 Economic activity
1 Lesson B Goods and services
I. Vocabulary
Label the pictures below. Use the words/expressions in table B below the pictures.

A B C D E

F G H I J

K L M N O

P Q R S T
Google.com/images

Table B

1. banana 2. bread 3. diamond 4. crude oil 5. cooking oil 6. gasoline 7. crabs 8. maize,
9. prawns 10. cashewnuts 11. apples 12. oranges 13. a bar of chocolate 14. bicycle
15. cheese 16. sandwich 17. cars 18. aluminum 19. eggs 20. dolphins

1. Classify the products in table B whether they are mineral, agricultural, industrial or marine.
2. Pick up one product that you would like to produce if you had money. Say why you have chosen it.
 II. Reading
Read the text below and answer the questions below it.

Goods and services

Goods are usually physical things (but not always) for which there is a demand. They are
physical because they can be seen and touched. They are produced in mines, factories, or
farms and they are consumed later. But before consumption, they can bestored in
warehouses, fridges, and other places/ways so that they are used later. Theyare traded on
markets, which means that owners can exchange them for money or other goods.
Services are intangible things, that is, they are not physical objects and exist in connection
with other things. When a doctor operates on a patient, he is providing medical services.
The patient gets an experience that cannot be seen or touched. So as Hill (University of East
Anglia) has put it, “a service is a change in the condition of a person or good as a result of
some activity performed by a person”.
Sometimes goods alone are not enough to fulfil people’s wants so they need services.
Services are activities provided by other people. Schools, hospitals, garages, auditing
companies and many more, they provide services. Although goods and services sharesome
characteristics, they are different in other ways. A reasonable distinction could be best
observed using a scale with two extreme points on which at one end we have pure goods
or products (maize, salt …) and at the other pure services (investment
advice, work done by MC in a conference …).

The table below shows how goods are different from services.

(For more information see G. Parry et al.(2011),https://courses.lumenlearning.com/marketing-

 Questions
1. What are goods?
2. What are services?
3. What makes services different from goods?
4. What characteristics are common in both goods and services?
5. When a famous musician sings at your party, is she providing goods or services?
Justify your answer.

III. Speaking
Remember that we normally use because, as, or since when we want to give a reason or
justify something.
6. Now look at the picture of characteristics of goods above and compare goods with
services; then give a reason:
e.g Salt is different from service because it is a tangible good/product.
As/Since salt is a tangible product, then it is different from teaching

IV. Writing
Grammar: Present simple

Negative
Notice how we make negative forms with verb to be. We add “not” to the verb as in the example below.

I am (‘m)

He/She/It is (‘s) not a student.

We/ You/ are students

They (‘re)

Exercise 1

Now, fill in blanks with the appropriate form of verb to be.

1. Economic activities ______ tangible things.

2. The weather _______ good today. It is very cold.
3. Today our teacher ______ late but he very often comes late.
4. We have to make good choices because the resources _____ enough.
5. Driving own car ______ an economic activity.
However, other verbs make negative forms differently.
For he/she/it we form the negative with: doesn’t + verb or does not + verb

Negative form
doesn’twork in the office.does
He/she/it
not work in the office.

Exercise 2

Fill in gaps with appropriate negative form of the given verb

1. Our manager _____lazy employees. (like)

2. He on Saturdays and Sundays. (work)
3. The factory raw material for manufacturers. (produce)
4. Shein this faculty. Her name is not in the list of current students.(study)
5. A library _________ food. (sell)
6. Does she arrive early at work? “No, she _________”. (do)

Other verbs than verb to be:

For I/we/you/they we form the negative with: don’t + verb or do not + verb

Negative form

I/we/you/they don’t plan meetings.

do not plan meetings

Exercise 3

Now, use the correct form of the verbs in brackets to complete blank spaces.

1. They ___________coffee in the office. It is not allowed! (have)

2. Do you like the job? “No, I _________”. (do)

3. Coconut trees ________ in the desert. (grow)

4. Do they arrive early at work? “No, they __________”. (do)

5. Accountants ____________ cars. (repair)

Writing 2
The chart below is about a daily routine of a businessperson. For each picture, write a sentence.

Writing 3
Write a composition about your daily routine.
Unit 1 Economic activity
1 Lesson C Production

I. Vocabulary
In the previous lessons, we have discussed economic activity. The pictures below refer to
economic activities in your home country/study country. Look at them and answer the given
questions.
1. What are the names of the pictures below? Write down the name of each picture.

Google.com/images

2. What do they have in common?

3. Refer to the economic activity of each picture.
II. Reading
Read the text and answer True, False or Not Mentioned to the following statements.
Poduction of cement in Mozambique
According to The Global Report 1988-2021 cement production throughout the country has
been growing. The numbers range from 1 Clinker plant, 4 integrated plants to 11 Grinding
plants scattered in various cities of the country. The leading companies include Cimentos
de Moçambique, Dugongo Cement, Limak, just to name a few.
Dugongo Cimentos was officially inaugurated on 26 May 2021. This factory is located in
Matutuine District, in Maputo Province. The capital city of Matutuine is Bela Vista and it
hosts thirty-seven thousand, two hundred and thirty-seven inhabitants.
Dugong Cimentos is a subsidiary of West International Holding Group (WIH Group).
Mozambique Dugongo Cimentos Project is a new suspension preheating cement
production line with daily capacity of 5,000 tons and it is closely aligned with the China’s
“One Belt, One Road” Development Policy.
Cement is mainly used as a binder in concrete, which is a basic material for all types of
construction, including housing, roads, schools, hospitals, dams and ports, as well as for
decorative applications.
The clinker production line is equipped with 3X12MW thermal power generation equipment. The
Project represents the highest level of intelligent plant with the latestcement production technology.
Clinker is the main component for the manufacture ofcement.

Adapted from: https://www.clbrief.com ›

Statements
1. The text says that the production of cement in Mozambique has been slowing down
fast.
2. All the plants for cement production are located in Matutuine District.
3. Bela Vista is the capital city of the country.
4. Dugongo cement is a smaller company controlled by the WIH Group.
5. Cement is only applied in artistic decorations.
6. Cement is one of the basic component in the production of clinker.

III. Speaking

Throughout Mozambique there are industrial sites like Moatize, Nacala, Matola and
many more. Think of an industry, factory or a company and the products produced or
services provided and write some notes about it.

1. Browse through your notes and tell your classmates in class.

V. Writing
Interrogative
Notice how to make questions with verb to be.

Am I
a
Is he/she/it student?

Are we/ you/ students

they ?

Exercise 1
Use the given words to write questions correctly.
1. your name /what? _________________________________________________________
2. the company/the address/what/of? ______________________________________________
3. she/where/at the moment? _____________________________________________________
4. the factory/losing/money? ______________________________________________________
5. what/daily routine/your? _______________________________________________________

With other verbs we make questions in the following way:

For he/she/it we make question forms with: does + verb…?

e.g. Does he write formal letters?

Notice the table below

Question form

arrive at work on time?

Does he/she/it
rain a lot in your hometown?

Yes,
he/she/it does. doesn’t.
No,
Exercise 2
Use the given words to write questions correctly.
1. cakes/you/like ? ___________________________________________________________________
2. in downtown/she/ live? ______________________________________________________________

3. how/so many/you make/friends? ______________________________________________________

4. get/I/to the museum/how? ___________________________________________________________
5. likes/who/pets? __________________________________________________________________
For I/we/you/they we make question forms with: do+ verb…?
e.g. Do you work as a secretary?
Notice the table below:
Question
form

Do I/we/you/th work late hours?

ey
Yes, do.
I/we/you/th
No, ey don’t
.

a.Use the given words to write questions correctly.

1. What newspaper/ you read? ______________________________________________________
2. What/ your brother/ do? _______________________________________________________
3. How often/ you have/ office meetings? ______________________________________________
4. How often/ your parents/ play golf? ________________________________________________
5. How many letters/ you type / a day? ________________________________________________
Unit 1 Economic activity
1 Lesson D Distribution
I. Vocabulary
1. Label the pictures A to F using the words and expressions from Table A.

Table A
1. Customer 2. Wholesaler or Distribution Center 3. Finished CD 4. Retailers,
Wholesalers, Distribution Centres 5. Suppliers of Raw Materials 6. CD Factory

A B__________________ C ________________

D ________________________ E ____________________ F
II. Reading 1

Read the text and answer the questions below it.

Distribution
Distribution means the process by which we make the goods or the service available to the
end consumer. Generally, the place of production is not the same as the place of
consumption. So, the goods have to be distributed to overcome the barrier of place.
At this point, the distribution of the products can be done by the organization itself. This is
called direct distribution. Alternatively, it can hire intermediaries and form distribution
channels i.e. indirect distributions. The plan will depend on several factors like:
 Product: Whether the product is perishable or durable will be a factor in deciding its
distribution model.
 Market: The size of the market will be a factor. In a large market, the direct
distribution may not be a perfect choice. Also if the markets are scattered indirect
channel will be more suitable
 Company: The size of the company and its product-mix are also deciding factors in
the decision about distributions.
 Marketing Environment: In a slow economy or depression a shorter distribution
chain is preferable. In a healthy economy, there is a wider choice for alternatives.
 Cost: The cost of the channel like transportation, warehousing and storage, tolls,
etc.are obviously a factor in this decision.
dapted from: Google.com/search/distribution

Questions:

1. Define distribution.
2. What is direct distribution?
3. What is indirect distribution?
4. Name factors that determine distribution.
5. Explain, how is the market factor important when making decisions on distribution?
Reading 2
Read the text below. For each numbered space 1-15, provide a suitable word from the given
alternatives A, B, C, or D.

Types of Intermediaries
Intermediaries are the middlemen that ensure smooth and effective distribution of
goods over a chosen geographical market. (1_________) are a very important factor in
the distribution process. Here are some types of middlemen usually found in the
(2_________) process. Agents are middlemen who represent the producer to the
(3_________). They are merely an extension of the company but the company is
generally bound by the actions of its (4_________). One thing to keep in mind, the
(5_________) of the goods does not pass to the agent. They only work on fees and
(6_________).
(7_________) buy the goods from the producers directly. One important characteristic
of wholesalers is that they buy in (8_________) at a lower rate than retail price. They
store and warehouse huge quantities of the (9_________) and sell them to other
intermediaries in smaller quantities for a profit.
Wholesalers generally do not sell the products to the end (10_________) directly.
They sell to other middlemen like retailers or distributors.
Distributors are similar to wholesalers in their function. Except they have a
(11_________)to carry goods from only one producer or company. They do not stock
a variety of productsfrom various (12_________). They are under contract to deal in
particular products of onlyone parent company.
Retailers are shop (13_________). The local grocery store, the mall, the stationary,
or the convenience shop are all retailers. The only difference is in their sizes.
Retailers will procure the (14_________) from wholesaler or distributors and sell
them to the finalconsumers. They will sell these products at a profit (15_________)
to their customers.
In the reality of the market, all producers rely on the distribution channel to some
extent. Even those who sell directly may rely on at least one of the above
intermediary for any purpose. Hence, the distribution channel is of paramount
importance in our economy.

A B C D
1 Markets Middlemen People Products
2 contribution distribution manufacturing production
3 customer owner product store
4 agents goods people workers
5 kind ownership quantity size
6 bonus commissions salaries wages
7 Clients Customers Manufacturers Wholesalers
8 bark bulk crowd gross
9 items produce products things
 10 client consumer distributor producer
11 container contract transport warehouse
12 brands models sizes types
13 assistants builders inspectors owners
14 good goods items materials
15 average length margin rate

III. Speaking
The diagram below represents a distribution cycle.
1. With a partner, match words from column A with words from column B.
A B
1 Farm A flour
2 Bakery B tractor
3 Mill C bread
4 Manufacturer C bread
5 consumer D wheat

2. Analyze the chain of processes then tell your partner about it.
3. Find an example of a distribution cycle in your community and share it.

Adapted from: Google.com/Distribution

IV.Writing
Present simple
Complete the text below using the correct form of the verbs in brackets.

Budget
A budget is an estimate of how much money one will make and spend over a certain
period of time, such as a month or year. Consumers may want to spend more, but their
total budget ____________ (to limit) them. Let’s look at a situation where consumers
____________ (to have) only two goods to choose from. A budget line ____________ (to
show) the combinations of the two goods that a consumer can purchase. For example,
Melieny ____________ (to have) a budget of 100 Mt. The two goods that are available
to her to purchase at school’s canteen ____________ (to be) sandwiches and juice packs.
The price of a sandwich ____________ (to be) 25Mt and a juice pack ____________ (to
sell) for 50Mt. If Melieny spends her 100Mt on juice, she can buy 2 packs. If she
____________ (to buy) only sandwiches, she can buy 4. Another possible combination in
between could be (2,1), that is, 2 sandwiches and a juice pack. This ____________ (to
indicate) that the total budget 100 Mt limits Melieny from buying other than that allowed
by the budget line.

Writing 2

Based on your notes from the reading, write a paragraph about your selected distribution cycle.
Unit 1 Economic activity
1 Lesson E Consumption
Refreshing
Look at the picture and make a few comments about it to your partner.

Google.com/images

I. Vocabulary
1. The words below are somehow related. However, in each group has an odd word.
Find and circle the odd word in each number.

A B C D
1 Buy bargain purchase sell
2 consumer customer producer user
3 convenience drugs drinks sandwich
4 breakable durable persistent strong
5 entity gang institution organization
6 commodities goods products services
7 classmates domestics families household
8 container item package parcel
9 consumption fabrication manufacturing production
10 Poor rich wealthy Well-off

2. What makes this odd word different from the other ones in the same group?
II. Reading
Read the text and answer the questions below it.

Consumption: Consumer goods and services

A consumer is a person or an entity who buys goods or services for non-commercial
purposes. The goods or services bought for such purpose are called consumer goods or
consumer services. Consumer goods are goods that people buy for consumption not for
selling. We can also call them final goods because when somebody buys them, they have
reached their final destination, to be consumed.
Consumer goods are the end result of manufacturing and production. They are what we
see on supermarket shelves.
Consumer goods can be divided into durable goods and non-durable goods. A Sofa, a fridge,
a TV set are durable. We do not buy them everyday/month. The non-durable goods comprise
food, drinks,bread … Basic or raw materials, such as copper, are not considered consumer
goods because they must be transformed into usable products.
Based on consumer buying patterns, marketers group consumer goods into four
categories: convenience, shopping, specialty, and unsought goods. Convenience goods are
those that are regularly consumed and readily available for purchase, such as packaged
food and drinks. Shopping goods require more planning and tend to be more expensive
and durable than convenience goods. Specialty consumer goods, like jewelry, are often
considered luxuries and are only purchased by those wealthy enough to afford them.
Finally, unsought consumer goods are readily available but rarely purchased.
Consumption, in economics, is the use of goods and services by households.
Consumption is distinct from consumption expenditure, which is the purchase of goods and
services for use by households. Consumption differs from consumption expenditure
primarily because durable goods, such as automobiles, generate an expenditure mainly in
the period when they are purchased, but they generate “consumption services” (for
example, an automobile provides transportation services) until they are replaced or
scrapped.
Some economists generally consider consumption to be the final purpose of economic
activity, and thus the level of consumption per person is viewed as a central measure of an
economy’s productive success.
Micro-economists have studied consumption behavior for many different reasons, using
consumption data to measure poverty, to examine households’ preparedness for
retirement, or to test theories of competition in retail industries.

What are consumer goods? Definition and examples - Market ...

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Questions

1. Give a definition of consumer.

2. In terms of consumption, how do you classify final goods? Provide examples.
3. What is the difference between convenience and specialty goods?
4. What is consumption expenditure?
5. Why do micro-economists use consumption data?
 Present Simple
Complete the extract using the correct form of the verbs in the table below
Verbs
be not have do decide shout enjoy find not have be

Extract
Today is the day that I make a big decision. I (1 _________) doing one of those things that I very often
(__________) them as a waste of time. Going to the beach, visiting friends, going to a local pub for a
pint of beer (__________) just a few examples. Instead, I (__________) being with my students or
sitting in front of my laptop preparing the lessons or designing assignments. So, what (__________) I
do? I grab a tracksuit- one of those I haven’t used for years, and a pair of sneakers, then head for the
gate.
It is 7 a.m. I start jogging but I realize that I (__________) my digital sports timer! I quickly go back for
it then I resume jogging. The aim (__________) to go round the neighborhood (around 5km) in less
than an hour. The weather is fine. As I wave and go past my neighbors I feel the adrenalin and suddenly
I remember the wonderful things that I did when I was young and energetic!
“Hey, what’s the matter with you?” Somebody (__________) grumpily. Then I notice that I had bumped
into someone…
Oh, I am terribly sorry… I had hardly finished apologizing when I … Is it still a day dream? Of course not,
he is my best childhood friend I (__________) seen him for a long time!