Vocabulary

to comprise включати, вміщувати

human being людина

syn. person, man

main головний

gift подарунок

knowledge знання

labour (Am. labor) праця

railway залізниця

road дорога, шлях

entrepreneur підприємець

to bring together звести разом

Exercises

1. Underline the attributive clauses, read and translate the sentences:

1. They comprise all the things people use.

2. They comprise all the goods and services (which) people need.

3. An entrepreneur is the person who organises all the three factors.

4. Entrepreneurs are the persons who organise and manage all this.

5. I don’t remember the name of the economist who wrote about that.

6. I have read the book which gives much information on economics in present-day Germany.

2. Translate the following:

1. Заводи, які виробляють цю продукцію.

2. Верстати, які їм потрібні.

3. Спеціалісти, які підготували цей документ.

4. Електростанції, які були закриті.

5. Факти, які ви добре знаєте.

6. Підприємства, які брали участь в цьому проекті.

7. Економісти, які сперечаються про це.

3. Have a look at the scheme given in the text and answer these questions:

1. What three factors of production do economists usually name?

2. What does each of them mean?

3. is the fourth factor recognized by Ukrainian economists, as far as you know?

4. Do factors of production mean economic resources?

5. What do economic resources usually comprises?

Text 2: Goods and capital

Goods which are wanted for their own sake, because they provide immediate satisfaction, are described as consumer goods.

Capital goods are not wanted for their own sake, but because they help firms to increase their outputs of consumer goods.

Whether a good is classed as a consumer good or a capital good sometimes depends upon the use to which it is put. A sewing machine used only in the home, for making and repairing clothes and other items for the family, is a consumer good. A sewing machine used in a clothing factory, however, is a capital good.

Perhaps the most striking feature of modern manufacturing industry is the very large amount of capital which each worker needs to do his job. In industries such as those producing motor cars, oil, chemicals and steel, this amounts to many thousands of pounds worth of capital for each worker employed.

Businesses usually describe their capital as either fixed capital or working capital.

Fixed capital is long lasting and consists of things which do not change their form in the process of production. A manufacturing firm would describe its factory buildings and machinery as fixed capital. For a farmer, fixed capital would comprise assets such as barns, cowsheds, milking machines and tractors.

Working capital includes those things which are used up in the process of production; that is, they are changed into some other form. A farmer’s seeds and fertilizers, a shoe manufacturer’s stocks of leather, and a furniture maker’s supplies of limber are good examples of working capital. Firms also include in their working capital the stocks of money they hold for running expenses (e.g. buying materials and paying wages).