Lesson 5: The Economy
Basic Economic Terms
You hear the word "economy1" on the news all the time. But what does it really mean? The economy affects the price of rice, the number of available jobs, and the development of our country. Understanding these basic economic terms is a B2-level skill that will help you understand the world better.
Key Economic Concepts
| ⇄ trade2 | (trayd) | ពាណិជ្ជកម្ម | The action of buying and selling goods and services. Example: "International trade is important for all countries." |
| ⬆️⬇️ supply and demand3 | (suh-ply and di-mand) | ការផ្គត់ផ្គង់និងតម្រូវការ | The relationship between how much product is available (supply) and how much people want it (demand). Example: "The price depends on supply and demand." |
| 💸 inflation4 | (in-flay-shun) | អតិផរណា | The rate at which prices increase over time. Example: "High inflation means your money buys less." |
| 🌱💰 investment5 | (in-vest-ment) | ការវិនិយោគ | Putting money into a business to make a profit. Example: "Foreign investment helped build the new airport." |
Economic Actions (Verbs)
| ✈️➡️ to export6 | (ek-sport) | នាំចេញ | To send goods to another country to be sold. Example: "Cambodia exports a lot of rice." |
| ⬅️✈️ to import7 | (im-port) | នាំចូល | To bring goods into a country from abroad. Example: "We import cars and electronics." |
| 🏭 to produce8 | (pro-dyoos) | ផលិត | To make or manufacture goods. Example: "That factory produces clothing." |
| 🛒 to consume9 | (kun-soom) | បរិភោគ | To buy and use goods and services. Example: "As a society, we consume a lot of electricity." |
Usage Note: The "Produce" Word Family
This word family is very common in economic discussions. Notice how the form changes.
- to produce (verb): They produce high-quality silk.
- a producer (noun): That company is a big producer of sugar.
- a product (noun): This is a good product.
- production (noun): The factory will increase its production next year.
In Conversation
Srey and Bora are discussing an article about the Cambodian economy.
Srey: I read that Cambodia's economy is growing. International trade is increasing.
Bora: That's good news. We export many agricultural products, like rice and cashews.
Srey: Right. And we import things like cars and electronics. It's all about supply and demand.
Bora: I am worried about inflation, though. The price of gasoline seems to go up every month.
Srey: I know. The article also mentioned a big foreign investment in a new factory.
Bora: Oh really? What will that factory produce?
Srey: It will produce clothing for export. It's good for the economy because it creates jobs.
quiz Check Your Understanding
1. When prices for everything rise and the value of your money falls, this is called ______.
- a) investment
- b) inflation
- c) trade
Click to see the answer
Answer: b) inflation
2. To send goods OUT of a country is to ______. To bring goods IN is to ______.
- a) import / export
- b) export / import
- c) produce / consume
Click to see the answer
Answer: b) export / import
3. The factory's ______ of shirts increased last year. (What is the noun for the *process* of making?)
- a) produce
- b) product
- c) production
Click to see the answer
Answer: c) production
edit Your Mission
- My Economy: Write two sentences about the economy of your country or city. (e.g., "My city's economy depends on tourism." "We export a lot of rice.")
- Supply and Demand: Think of one product in Cambodia where the price changes with the season (e.g., mangoes, durian). Write a sentence about its supply and demand.
- Speak: Your mission is to talk to a friend about the price of something (like gasoline or food). Ask them, "Why do you think the price is high/low?" Use words like supply or inflation if you can.
book Lesson Glossary
- Economy (noun) - Khmer: សេដ្ឋកិច្ច - The system of trade, industry, and money in a country. ↩
- Trade (noun) - Khmer: ពាណិជ្ជកម្ម - The action of buying and selling goods and services. ↩
- Supply and Demand (noun phrase) - Khmer: ការផ្គត់ផ្គង់និងតម្រូវការ - The relationship between product availability and consumer desire. ↩
- Inflation (noun) - Khmer: អតិផរណា - The rate at which prices increase. ↩
- Investment (noun) - Khmer: ការវិនិយោគ - Putting money into a business to make a profit. ↩
- to export (verb) - Khmer: នាំចេញ - To send goods to another country to sell. ↩
- to import (verb) - Khmer: នាំចូល - To bring goods into a country to sell. ↩
- to produce (verb) - Khmer: ផលិត - To make or manufacture goods. ↩
- to consume (verb) - Khmer: បរិភោគ - To buy or use goods and services. ↩