Factors of Production: Capital and Labour

1. Factors of production are resources used by firms as inputs for a good or service to be produced. Factors of production are as follows: capital, labour, and natural resources.

2. In economic theory, the term "capital" refers to goods and money used to produce more goods and money. Classifications of capital vary with the purpose of the classification. The most general distinction is the one made between physical, financial, and human capital.

3. Physical capital is land, buildings, equipment, raw rfiaterials; bonds, stocks, available bank balances are included in the financial capital. They both make a great contribution to production.

4. To group capital into fixed capital and circulating capital is common practice. The former refers to means of production such as land, buildings, machinery and various equipment. They are durable, that is, they participate in the production process over several years. Circulating capital includes both non-renewable goods, such as raw materials and fuel, and the funds required to pay wages and other claims against the enterprise. Non-renewable goods are used up in one production cycle and their value is fully transferred to the final product.

5. Human capital is knowledge that contributes "know-how" to production. It is increased by research and disseminated through education. Investment in human capital results in new, technically improved, products and production processes which improve economic efficiency. Like physical capital, human capital is important enough to be an indicator of economic development of a nation.

Вправа VII. Прочитайте 5 абзац тексту і дайте письмову відповідь на запитання:

Can you characterize the human capital?

IV ВАРІАНТ

Вправа І. Перепишіть наступні речення, підкресліть Participle I та Participle II, визначте їх функції. Перекладіть речення на українську мову:

1. Having been made 20 years ago, the machine is out of date.

2. I wrote them a friendly letter, thanking for delivery of goods.

3. The inspector examining the articles is a competent specialist.

4. Unless tested the equipment must not be put into operation.

Вправа II. Вставте в речення необхідне модальне дієслово, перекладіть на українську мову:

1. You ... have the goal of becoming an accountant some day.

2. ... I borrow your calculator?

3. Hurry up, we ... not be late.

4. You ... order goods by computer.

5. Everybody ... obey the law.

Вправа Ш. Перекладіть наступні речення, пам'ятаючи про різні значення дієслів to be, to have, to do, та визначте їх функції в реченнях:

1. His report was long and had no new ideas.

2. The research method has been universally applied for 20 years.

3. She does well in most subjects.

4. This report doesn't include information on potential customers.

Вправа IV. Перепишіть речення з герундієм, визначте його функцію та перекладіть речення на українську мову:

1. These goods are worth buying.

2. The main problem was getting products from a producer to a customer.

3. Mary was called down by her boss for coming late to work.

4. Did you find any difficulty in solving this problem?

Вправа V. Прочитайте текст Перепишіть і письмово перекладіть на українську мову 1, 3, 4, 5 абзаци тексту.