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Resources (які використовуються підприємствами як запроваджені фактори виробництва) as inputs to produce goods and services (називаються) factors of production.

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Economists make a distinction between four basic factors of production: (земля, праця, капітал та підприємництво).

Land is the physical space on which production takes place, as well as the (природні ресурси) found under it or on it.

Labour is the time (люди) spend (виробляючи товари та послуги). Labour (як економічний термін) is considered (з точки зору кількості) - the number of workers and (якості) - the skills and abilities these workers (мають).

It is common, in economics, to understand labour as (фізичні та розумові зусилля) needed to (задовольнити людські потреби).

(Засоби виробництва) are final goods that are produced for use in the production of other goods. Capital includes the physical plants, (машинне обладнання та устаткування) used in (процесі виробництва) production process.

(Підприємництво) is (поєднання виробничих ресурсів) to produce new or improved products. The (підприємці), motivated by (доходами), can (ризикувати діяльністю підприємства) to produce goods combining the above resources.

(Інформація) is the fifth large factor of production, as (важливий) as land, labour and capital. The wide-scale use of information and communication technology in industry not only leads to (збільшення у продуктивності) but also to the (створення нової продукції) and new markets.

 

Exercise 10. At least one word or word-combination has been omitted from each of these sentences. Fill in the blanks from the list of missing words below and translate them into Ukrainian.

 

1. Factors of production are the things provided by nature or by people that are used _____________________________________________ to satisfy human wants. - _____________ ______________________________________________________________________________________________________________________________________________________________

2. Productive resources are also called ________________________ used in production process. - ______________________________________________________________________________________________________________________________________________________________

3. __________________________ consist of productive physical and mental abilities of people. - _______________________________________________________________________________ _______________________________________________________________________________

4. ____________________________ use the term “capital” to mean money – the funds used ______________________________________ and to finance _____________________________. - _______________________________________________________________________________

________________________________________________________________________________________________________________________________________________________________

5. Capital goods, or capital, is _________________________ that can be used to help produce consumer goods. - ________________________________________________________________ _______________________________________________________________________________

6. ______________________ as an economic term is created by human resources working with material resources. - _______________________________________________________________ _______________________________________________________________________________

7. Labour refers to ______________________________of people hired to participate in the production of goods and services. - ___________________________________________________ _______________________________________________________________________________

8. The entrepreneur ________________________ the factors of production, _________________ _______________, organizes the management and earns profit or meets with failure. - __________ _____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

9. A society’s resources consist not only of the gifts of nature, such as land, forests, and minerals, but also of human resources, both __________________________, and all kinds of ___________ _________________, such as tools, machinery, and buildings. – ___________________________

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

10. _______________________ are available in a great quantity and have no price and no ______________________________ to a society. - ______________________________________

________________________________________________________________________________________________________________________________________________________________

The missing words and word-combinations:

man-made resources free goods to buy productive resources
business people the inputs raises the necessary money
a factor of production brings together mental and physical
the efforts or activities opportunity costs to create goods and services
capital human resources the operation of a business

Exercise 11. On the left of the page there are the first halves of sentences. The second halves of the sentences are on the right, though not in the same order. Pair the halves and then write your own list of the completed sentences. Translate them into Ukrainian.

1. The factors of production include a. through investments in education, training, and health.
2. To the economist, physical capital is b. entrepreneurs earn profits.
3. To some economists entrepreneurs are c. they can be put into production process.
4. A factory, tools, machinery and trucks are capital goods because d. there is enough for everyone to have as much as they want..
5. When the other three factors of production, land, labour and capital combined successfully, e. something created by people to produce other goods and services.
6. The term “capital” is often used by business people to refer to money they can use f. to buy means of production and other similar productive resources.
7. An economy uses its existing limitless resources g. a special form of labour input.
8. The quality of labour resources can be improved h. natural resources, human resources capital and entrepreneurship.
9. Since free goods are so abundant in nature that i. to combine inputs to produce goods and services.

 

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Exercise 12. Match each term in column A with its definition in column B.

A B
1.Capital a. goods which are needed but are in abundant supply and therefore don’t need to be purchased.
2.Entrepreneurship b. A factor of production that includes land itself as well as mineral deposits, timber, water, and other natural resources.
3.Entrepreneur c. Anything that is produced by the economic system which is used as an input in the production of future goods and services.
4.Factors of production d. The difference between the price received and the amounts paid as rewards to the factors of production.
5.Free goods e. Wealth supplied by nature.
6.Human resources f. The physical and mental efforts that people put into the creation of goods and services.
7.Income g. Return to those who supply the factor of production known as “land”.
8.Information h. Productive resources needed to produce economic goods.
9.Interest i. A person who brings together the factors of production and runs a business at his own financial risk.
10. Investment j. The money earned by a person from work, property, or investment, regularly or over a specified time.
11. Labour k. Payment to those owners of resources who supply the factor of production known as “labour”.
12. Land l. A factor of production that is defined as the function performed by those who bring together the other factors of production.
13. Natural resources m. facts or data, pertaining to a particular subject or regarded as significant.
14. Profit n. A factor of production that represents those hired workers whose human efforts and activities are directed toward production.
15. Rent o. a sum of money to be used in such a way that a profit or increase in capital may be expected.
16. Wages p. The money earned by a person as a reward for allowing somebody to use his money and for waiting for the repayment of the loan.

that is produ

                               

Exercise 13. Correct the following statement if you find them wrong. Make sure you begin your answers with such commonly accepted phrases as:

Ø I quite agree with smb/smth.

Ø Yes, that's quite right.

Ø I don't think that's quite right.

Ø I am afraid I don't/can’t agree with smb/ smth.

Ø I'm afraid that's completely wrong.

Ø That's not quite right/true.

Ø I wouldn't say so.

Ø Oh, no, quite on the contrary.

Ø As far as I remember…

Exercise 14. Translate the sentences into English using the active vocabulary.

1. Причина, через яку люди не можуть задовольнити усі свої бажання та потреби, – це нестача виробничих ресурсів. ___________________________________________ ___________________________________________ ______________________________________________________________________________________
2. Фактори виробництва – це ресурси суспільства, які використовуються в процесі виробництва. ___________________________________________ ___________________________________________ ___________________________________________
3. Фактори виробництва розподі-ляються на три основні групи – земля, праця, капітал, які об’єднуються четвертим фактором виробництва, що називається підприємництвом. ___________________________________________ ___________________________________________ ___________________________________________ ___________________________________________ ______________________________________________________________________________________
4. Економічний термін “праця” означає людські ресурси або, іншими словами, це - люди з усіма їх зусиллями та здібностями. ___________________________________________ ___________________________________________ ___________________________________________ ___________________________________________
5. Кількість робочої сили залежить від загальної кількості населення країни та кількості людей, здатних працювати. ___________________________________________ ___________________________________________ ___________________________________________
6. Підприємництво – це готовність власників підприємств ризикувати для того, щоб отримати прибуток. __________________________________________ ___________________________________________ ______________________________________________________________________________________
7. Різниця між фізичним капіталом і фінансовим капіталом полягає в тому, що фізичний капітал – це фактор виробництва, а саме, речі, які створені людиною, щоб виробляти інші товари та послуги, а фінансовий капітал – це гроші, які використовуються, щоб купувати засоби виробництва. ___________________________________________ ___________________________________________ ___________________________________________ ___________________________________________ ___________________________________________ ___________________________________________ _________________________________________________________________________________________________________________________________
8. Гроші не є фактором виробництва. ______________________________________________________________________________________
9. Виробництво має місце і товари виробляються, коли підприємці об’єднують інші три фактори виробництва. ___________________________________________ ___________________________________________ ___________________________________________ ___________________________________________
10. На думку сучасних економістів, інформація - це п’ятий фактор виробництва. ___________________________________________ ___________________________________________ ___________________________________________
11. Інформація надає можливість підприємцям приймати кращі ділові рішення і успішно конкурувати на ринку. ___________________________________________ ___________________________________________ ___________________________________________ ___________________________________________
12. Власники землі, праці та капіталу отримують свої доходи у формі ренти, заробітної плати та відсотку відповідно. ____________________________________________________________________________________________________________________________________________________________________________
13. Вільні товари – не такі дефіцитні, щоб бути проблемою, яка вивчається економікою. _________________________________________________________________________________________________________________________________

 

Exercise 15. Answer the following questions.

1. Why is it important for a society to use economic resources efficiently?

2. What resources are called the factors of production?

3. What are the factors of production?

4. What is “land” as a factor of production?

5. What are natural resources?

6. What is rent? Who receives it?

7. Why are some goods classified as free ones?

8. What is labour?

9. What efforts do people put into the production of goods and services?

10. What price is called wage?

11. Why is labour not of the same quality?

12. What is the third factor of production?

13. What does capital refer to as a factor of production?

14. What kinds of capital do you know?

15. What is the difference between physical capital and financial capital?

16. What is interest?

17. How do economists and entrepreneurs consider financial capital?

18. What is entrepreneurship?

19. Whom do we call an entrepreneur?

20. What role do entrepreneurs serve in a modern society?

21. Who brings together the other three factors of production?

22. What reward do entrepreneurs receive for their risks involved?

23. Why is information considered to be the fifth factor of production?

24. What kinds of payment are made for the use of the factors of production?

 

Questions for economic reasoning and discussion

1. “Land” is considered to be in limited supply. To the economist, “labour” varies in size over time. Explain these statements. ______________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2. Is there such thing as “human capital”? Are scientists, engineers, teachers, doctors, lawyers, and skilled workers, for example, part of society’s capital? What criteria would you use when deciding whether something is qualified as capital?______________________________________

___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

3. Choose the right variant. Only one is possible.

1. Which of the following is not a productive resource?

a. Land

b. Labour

c. Money

d. Capital

2. Which of the following provides the most complete description or list of resources from an economic point of view?

a. Land, labour, capital, and entrepreneurship.

b. Utility, economics, knowledge, and scarcity.

c. Canned goods, refrigerators, television sets, and shoes.

3. Factors of production are

a. the inputs into the production process.

b. weather, social, and political conditions that affect production.

c. the physical relationships between economic inputs and outputs.

d. all of the above.

e. none of the above.

4. All of the following categories are factors of production except:

a. entrepreneurship.

b. capital.

c. land.

d. money.

5. Which economic feature often results from the use of the other three features?

a. Land


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