The capital stock -основний капітал/основні виробничі фонди.

UNIT FOUR

Factors of Production

ESSENTIAL VOCABULARY

1. Condition n. – a favourable or unfarourable state of something – умова, стан. Business conditions – ділова/господарська кон’юктура, financial conditions – фінансовий стан/фінансові умови, market condition(s) – ринкова кон'юнктура.

2. Effort n. – an expense of strength and energy to achieve a desired end – зусилля, намагання. Joint/combined efforts - спільні зусилля. To make an effort – докласти зусилля, намагатися, to put an effort in/into something – вкладати зусилля. Syn. an attempt.

3. Failure n. – a lack of success - невдача, банкрутство, провал. Business failure – банкрутство підприємства, market failures – недоліки/хиби ринкової системи.

4. Income n. – money of all kinds received by a person or organization in a year from work, investment, rent, etc. – прибуток, дохід. Capital income - прибуток від капіталу. To draw / earn/gain/get / make an income – отримувати прибуток, to generate income – накопичувати прибуток. Syn. a profit, a return.

5. Input n. – a resource required by a firm to enable it to produce goods and services – запроваджений фактор виробництва. Capital inputs - затрати капіталу, human input - людські затрати, labour input - затрати праці.

6. In the long run – measured over a prolonged period of time – у кінцевому підсумку, кінець кінцем, на закінчення,врешті решт, нарешті. Syn. after all, at last, ultimately, in the end. Ant. in the short run – незабаром, невдовзі, скоро.

7. Means n. – something that enables a purpose to be fulfilled – засоби. Means of production – all goods that are made with the purpose of using them to produce other goods – засоби виробництва. Syn. capital goods.

8. Own v. – to have as property – володіти. Syn. to have, to possess.

9. Payment n. – the sum of money paid – платіж, сплата. To effect/make payment – здійснювати платіж, Syn. a pay.

10. Raise v. – to increase the amount, size, value – підвищувати, збільшувати. To raise funds / money / capital – добувати (отримувати) гроші (капітал). Syn. to go up, to increase, to rise.

11. Risk n. - a chance or possibility of suffering loss, danger, injury, etc – ризик. At one's own risk – на свій страх та ризик To assume/take/a/the risk(s), to risk – ризикувати, наражатися на ризик. Syn. a hazard.

12. Reward n. – something given or received for service, effort, or achievement – винагорода. In reward for something – у винагороду за щось, money reward – грошова винагорода. To draw / earn/gain/get / make a reward – отримувати винагороду. Syn. a compensation.

Text

Economic resources are scarce relative to the limitless needs and wants of people and businesses operating in the economy. It is important to use these resources efficiently in order to maximize the output that can be produced from them.

They are combined in various ways to produce goods and services. Since these resources go into the creation of goods and services, they are called the factors of production. Each factor of production has a place in the national economy, and each has a particular function.

Traditionally, economists have noted four factors of production: land, labour, capital, and entrepreneurship.

ü Land or natural resources are the things provided by nature such as soil and minerals that are used in the creation of products. The price paid for the use of land is called rent.

Some nations are rich in natural resources and develop this by specializing in the extraction and production of these resources, for example, the development of the North Sea oil and gas *.

Air, sunshine, rainfall are classified as free goods since consumption by one person does not reduce their availability for others - free goods do not have an opportunity cost. One major resource is for the most part free - the air we breathe. The rest are scarce, because there are not enough natural resources in the world to satisfy the demands of consumers and producers.

ü Labour is the human input into the production process. Economists distinguish between the physical and mental efforts that people put into the creation of goods and services. The price paid for the use of labor is called wages. Wages represent income to workers, who own their labour *.

Not all labour is of the same quality. Some workers are more productive than others because of the education, training and experience they have received. The amount of labour will depend ultimately on the population of the country (or the world, if people can immigrate), and on the number of people who are available to work. Those in school, those retired, too handicapped to work *, mothers who stay at home with their children are not part of the labour force.

ü Capital goods or capital as it is commonly called are man-made goods (or means of production) which are used in the production process. Capital or physical capital refers to the machinery, tools *, roads, factories, and buildings which individuals have produced in order to produce other goods and services. A modern industrialized economy possesses a large amount of capital, and it is continually increasing. Increases to the capital stock * of a nation are called investment. Investment is important if the economy is to achieve economic growth in the long run.

To an economist, capital has another meaning. It is the finance raised to operate a business whereas business people refer capital to money they can use to buy factories, machinery and other similar productive resources. Payment for the use of someone else's money, or capital, is called interest.

So, economists distinguish between physical and financial capital.

ü Entrepreneurship is the willingness of business owners to take risks and introduce new products and services to the market. It is the managerial or organizational skills needed by most firms to produce goods and services. Because of its essential role in initiating the process of production, entrepreneurship is identified by some economists as a "fourth factor of production," along with land, labour and capital. Entrepreneurs are people who bring together other productive resources to make goods and services. The success and/or failure of a business often depends on the quality of entrepreneurship.

Entrepreneurs serve an important role in enabling the economy to adjust to changing conditions and new possibilities for material improvements by creating new business enterprises, and even whole new industries.

The reward to entrepreneurs for the risks, innovative ideas and efforts that they have put into the business are profits, whatever remains after the owners of land, labor and capital have received their payments.

ü Today, another factor of production has become vitally important. The fifth factor of production is information. Information means facts and figures about markets and competition that are often stored on computers and are accessible immediately. This is a computer age, and business cannot compete without information about markets, financial conditions, and other important business conditions.

COMMENTS

the development of the North Sea oil and gas -розробка покладів нафти та газу в Північному морі;

who own their labour -хто володіє своєю робочою силою;

too handicapped to work -ті, хто мають занадто великі фізичні або розумові вади, щоб працювати; ті, хто не можуть працювати через занадто великі фізичні або розумові вади;

tools - знаряддя (праці);

the capital stock -основний капітал/основні виробничі фонди.

Exercise 1. Read, translate into Ukrainian in written form and learn by heart the definitions of the following economic terms and concepts.

1. Capital: something created to produce other goods and services; also money used to pay for the operation of a business.	___________________________________________ ___________________________________________ ___________________________________________
2. Entrepreneur:a person who creates a business in the hope of earning a profit; also a person, who organizes, manages and assumes the risk of a business enterprise.	___________________________________________ ___________________________________________ ___________________________________________ ______________________________________________________________________________________
3. Entrepreneurship:the managerial or organizational skills needed by most firms to produce goods and services at a profit.	___________________________________________ ___________________________________________ ___________________________________________
4. Factors of production:the productive resources of land, labour, capital and entrepreneurship that go into the production process.	___________________________________________ _________________________________________________________________________________________________________________________________
5. Human resources:the physical and mental efforts needed to produce goods and services.	___________________________________________ ___________________________________________ ___________________________________________
6. Information:facts or details that tell something about the person, situation, event etc.	_________________________________________________________________________________________________________________________________
7. Interest:payment for using someone else’s money; income derived from allowing someone else to use one’s money.	_________________________________________________________________________________________________________________________________
8. Investment:the use ofmoneyto get a profit or to advance in business activity.	___________________________________________ ___________________________________________ ___________________________________________
9. Labour:the human efforts required to produce goods and services.	___________________________________________ ___________________________________________
10. Land:the gift of nature in the form of useful materials of all kinds in or on the earth, including surface space, soil, rocks, minerals, water, wind and weather.	_________________________________________________________________________________________________________________________________ ___________________________________________
11. Natural resources:the things provided by nature which go into the creation of goods and services.	_________________________________________________________________________________________________________________________________
12. Rent:return paid to those who supply the factor of production known as land.	___________________________________________ ___________________________________________
13. Wages:the price paid for the use of labour. (To the economist, the term refers to the nation’s wealth paid to labour, as distinct from other forms of income – rent, interest, and profit).	_______________________________________________________________________________________________________________________________________________________________________________________________________________________

Exercise 2. Give the Ukrainian equivalents for the following.

1. the limitless needs and wants _____________________________________________________

2. the national economy ___________________________________________________________

3. the extraction and production _____________________________________________________

4. air, sunshine, rainfall are classified ________________________________________________

5. to distinguish between the physical and mental efforts _________________________________

________________________________________________________________________________

6. the amount of labour ____________________________________________________________

7. man-made goods _______________________________________________________________

8. a large amount of capital ________________________________________________________

9. to achieve economic growth ______________________________________________________

10. the willingness of business owners _________________________________________________

11. its essential role _______________________________________________________________

12. to bring together _______________________________________________________________

13. to adjust to changing conditions ___________________________________________________

14. to become vitally important ______________________________________________________

15. facts and figures _______________________________________________________________

16. business cannot compete without __________________________________________________

Exercise 3. Find the English equivalents for the following.

1. створення товарів та послуг ____________________________________________________

2. певна функція ________________________________________________________________

3. речі, які надаються природою ___________________________________________________

4. решта – рідкісні _______________________________________________________________

5. вільний товар ________________________________________________________________

6. такої ж якості ________________________________________________________________

7. освіта, підготовка та досвід _____________________________________________________

8. ті, хто на пенсії (за віком) ______________________________________________________

9. засоби виробництва ___________________________________________________________

10. сучасна промислово розвинена економіка _________________________________________

11. на думку економістів __________________________________________________________

12. схожі виробничі ресурси _______________________________________________________

13. управлінські або організаційні уміння ____________________________________________

14. інноваційні ідеї та зусилля ______________________________________________________

15. бути доступним _______________________________________________________________

Exercise 4. Match the verbs/verbal phrases, prepositions (if necessary) and nouns/noun phrases as they occur together in the text: translate the expressions they make into Ukrainian.

1.	to maximize		the creation
2.	to go		other productive resources
3.	to be rich	between	a business
4.	to distinguish	to	the population
5.	to depend	into	the business
6.	to refer		the output
7.	to operate	in	the machinery
8.	to adjust	on	the physical and mental efforts
9.	to put		changing conditions
10.	to bring together		natural resources

Exercise 5. Match these nouns/noun phrases, prepositions (if necessary) and nouns/noun phrases as they occur together in the text: translate the expressions they make into Ukrainian.

1.	the amount		entrepreneurs
	2.	production	about	owner
3.	the reward		a business
4.	information	of	labour
5.	the owners		economy
6.	the failure	to	markets
7.	the national		process
8.	a business		land

Exercise 6. Copy out from the texts the sentences containing the following words and word- combinations and translate them into Ukrainian.

Nations are rich in: ________________________________________________________________

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

who are available to work: __________________________________________________________

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

human beings: ____________________________________________________________________

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

similar productive resources: ________________________________________________________

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

is identified by: ___________________________________________________________________

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

in enabling the economy: ___________________________________________________________

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

financial conditions: _______________________________________________________________

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Exercise 7. Choose words and word-combinations having the same or similar meaning to the words listed below. More than one is possible.

1. винагорода (2)
2. виробляти (3)
3. володіти (3)
4. засоби виробництва (4)
5. збільшувати (4)
6. зусилля (2)
7. необмежений (2)
8. отримувати прибуток (3)
9. платіж (2)
10. прибуток (3)
11. ризик (2)
12. ризикувати (3)
13. спільні зусилля (2)
14. у кінцевому підсумку (3)
15. фактор виробництва (2)

a payment	in the end	to own	a profit	a factor of production
man-made goods	an income	limitless	to risk	means of production
in the long run	joint efforts	to go up	to make	combined efforts
to gain an income	to rise	to produce	a hazard	ultimately
to take the risk	a reward	a pay	to have	to earn an income
to create	an effort	to increase	to raise	unlimited
a compensation	to possess	a return	an attempt	to assume a risk
to draw income	capital	a risk	an input	capital goods

Exercise 9. Translate the words in brackets into Ukrainian.

Scarcity means that (жодне суспільство) has enough resources to produce all the goods and services necessary (для того щоб задовольнити усі людські бажання).

Дата добавления: 2015-11-14