V. Translate into English:

1. Решение вопроса о распределении ограниченных ресурсов в экономике (обществе) зависит от того, что именно, каким способом и для кого данное общество намерено производить.

2. Различают следующие виды экономических систем: рыночная, административно-командная и смешанного типа.

3. Рыночная экономика характеризуется частной собственностью на ресурсы и использованием системы рынков и цен для управления экономической деятельностью.

4. В рыночной экономике невелика или очень мала необходимость в планировании, контроле и широкомасштабном вмешательстве со стороны государства.

5. В плановой экономике все крупные решения, касающиеся производства, потребления и распределения продукции, принимаются центральным плановым органом.

6. В плановой экономике покупатели лишены возможности влиять на производство товаров.

7. Государство в условиях плановой экономики может гарантировать своим гражданам образование и медицинское обслуживание.

8. В реальной действительности экономические системы располагаются между чисто рыночной и плановой экономикой.

9. Смешанная экономика – это система, при которой частная собственность и рынок, а также правительство взаимодействуют в решении экономических проблем.

VI. Answer some questions:

1. What are the three main question of the economy?

2. What is an economic system?

3. What are the main economic systems today?

4. How can you characterize centrally planned economies? What are their specific features?

5. What is a market economy?

6. What’s the main difference between a market economy and a planned economy?

7. Are there really pure examples of planned and market economies in the world?

8. What’s a mixed economy? What’s its aim?

Литература

Основная: 2, 3, 4.

Дополнительная: 1, 2, 3.

Topic 3. Factors of production

In economic theory, factors of production (or productive inputs) are the resources employed to produce goods and services. The factors of production include natural resources, human resources, capital and entrepreneurship. Each factor of production has a place in economic system, and each has a particular function. People who own or use a factor of production are expecting a “return or reward”. This generates income which, as it is spent, becomes a kind of fuel that drives the economy.

Natural Resources or «Land»

Natural resources are the things provided by nature that go into the creation of goods and services. They include such things as minerals, wildlife and timber resources. Economists also use the term «land» when they speak of natural resources as a factor of production. The price paid for the use of land is called rent. Rent becomes income to the owner of the land.

Human Resources or «Labor»

Economists call the physical and mental effort that people put into the creation of goods and services labor. The price paid for the use of labor is called wages. Wages represent income to workers, who own their labor. Human labour produces both goods and services. The national labour force are those people who are available for work within the nation, i.e. the working population.

Capital

To the economist, physical capital (or «capital» as it is commonly called) is something created by people to produce other goods and services. A factory, tools and machines are capital resources because they can be used to produce other goods and services. The term capital is often used by business people to refer 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. But money, as such, produces nothing: hence, it is not to be considered as an economic resource. Real capital— tools, machinery, and other productive equipment - is an economic resource; money or financial capital is not. The process of producing and accumulating capital goods is known as investment.

Entrepreneurship

Closely associated with labor is the concept of entrepreneurship, the managerial or organizational skills needed by most firms to produce goods and services. The entrepreneur brings together the other three factors of production. When they are successful, entrepreneurs earn profits. When they are not successful, they suffer losses. The reward to entrepreneurs for the risks, innovative ideas and efforts that they have put into the business, they obtain the money that remains after the owners of land, labor and capital have received their payments.

Study carefully the meaning of the following phrases and word combinations to avoid any difficulty in understanding the following text.

factors of production – факторы производства

natural resources – природные ресурсы

human resources - человеческие ресурсы

capital and entrepreneurship – капитал и предпринимательство

return or reward – доход или вознаграждение

wildlife and timber resources – живая природа и ресурсы древесины

to allocate the factors of production - размещать факторы производства

property – cобственность, имущество; достояние

to refers (to) – относиться (к)

raw materials – сырье

entrepreneurial – предпринимательский

entrepreneur - бизнесмен, делец, предприниматель

enterprise – предприятие

pertinent - уместный; подходящий; имеющий отношение, относящийся к делу

purchase - приобретение, покупка

capital employed – используемый капитал

capital goods - средства производства, капитальные блага, капитал (в смысле товара)

consumer goods - потребительские товары, товары народного потребления

bankruptcy - банкротство; несостоятельность

stockholder - акционер; пайщик, владелец акции

to undertake – предпринимать, брать на себя определенные обязательства

in return – в обмен, в оплату

to render service – оказать услугу

reward – вознаграждение

to judge – судить, оценивать

an employer – работодатель

an employee – работник

surplus – излишек, остаток

to negotiate – договариваться, обсуждать условия

to justify – оправдывать, объяснять

to deliberate – обдумывать, взвешивать

assets – имущество, активы

expense – трата, расход