Economics - The Invisible Hand

 Economics - The Invisible Hand

Here is a short Economics listening exercise I did my students a while back. Read through the list of words and guess where they go in the text first, then listen to the video and see if you were correct! If there are any words you don't know then look them up in www.reverso.net - this is a pretty good online dictionary and translation site.

Extra: Spot the phrasal verb that always comes up in a TOEFL exam!

Here is a link to the video clip:  The Invisible Hand

Use the words below to complete the text of the video clip.

economist	hands-off	stall	tricky	leave	free- marketeers	freely
positive	central	reach	traders	lower	enough	meantime
case	figure	compete	spoilt	charges	visible	equilibrium

An economy is a ______________________ thing to control and governments are always 

_______________________ out how to do it. Back in 1776, ____________________ 

Adam  Smith shocked everyone by saying that what governments should actually do is just 

leave everyone alone to buy and sell _________________ among themselves. He 

suggested that if they just _______________________  self-interested 

______________________ to ______________ with one another, markets are guided to 

_____________________ outcomes as if by an Invisible Hand. If someone 

_____________________ less than you, customers will buy from them instead so you'll 

have to ____________________ the price or offer something better. Whenever 

_____________________people demand something, they'll be supplied by the market like 

_____________________ children only in this _________________ everyone's happy. 

Later ____________________ like Austrian economist Friedrich Hayek argued that this 

"________________" approach actually works better than any _______________________

 plan. But the problem is, economies can take a long time to ____________________ their 

_____________________________ and may even ______________ along the way and in 

the ______________________ people can get a little frustrated which is why governments 

usually end up taking things into their own more __________________ hands instead.

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 Answers

An economy is a tricky thing to control and governments are always trying to figure out how to do it. Back in 1776, economist, Adam Smith shocked everyone by saying that what governments should actually do is leave just everyone alone to buy and sell freely among themselves. He suggested that if they just leave self-interested traders to compete with one another, markets are guided to positive outcomes as if by an Invisible Hand. If someone charges less than you, customers will buy from them instead so you'll have to lower the price or offer something better. Whenever enough people demand something, they'll be supplied by the market like spoilt children only in this case, everyone's happy. Later free-marketeers like Austrian economist Friedrich Hayek argued that this « hands-off » approach actually works better than any central plan. But the problem is, economies can take a long time to reach their equilibrium, and may even stall along the way and in the meantime, people can get a little frustrated which is why governments usually end up taking things into their own more visible hands instead.

And the phrasal verb?

to figure out - it's often in TOEFL conversations so a good one to learn! 

I appreciate feedback so let me know what else you want to see re TOEFL stuff!

Thanks and bye for now!