Unit 2 Labour and capital

Before reading the text study the vocabulary:

Vocabulary

human factor – человеческий фактор

to perform work – исполнять работу

ancestors – предшественники

to look for – искать

nothing of the sort – ничего подобного

a stock of the tools and equipment – запасы/фонд/парк инструментов и оборудования

to hand on – передавать

to enable smb to do smth – дать возможность кому-либо сделать что-либо

to set up – образовать

fixed capital – основной капитал

to collapse – разрушаться

a mine – шахта

Labour

Labour is the human factor of production. It has been said that we need not worry when a new "mouth" is born into the world, for it brings two hands to work for it. There are 5,000 million people in the world, most of them having some degree of skill and many of them so gifted that there is no work they cannot perform. We have bridged the mightiest rivers, made the waves and the air our servants for transport purposes, set satellites m space and sent probes to distant planets. We also make a lot of clothes, grow a lot of food, build a lot of houses, make innumerable furnishings, etc. We are cleaner than our ancestors, richer than our ancestors, healthier than our ancestors - yet even so there is a lot still to do. When the entrepreneur sets out to create goods and services he/she looks for help from other people.

Capital

Capital is the third resource. It is a much-misunderstood word. Many people think of capital as money, but it is nothing of the sort. Capital is the stock of tools and equipment that one period of production hands on to the next period, to enable production to take place.

In business, money is called liquid capital. It is liquid because it can flow anywhere. We can give it to a bridge-builder to make a bridge, or a cement manufacturer to build a cement works, or to a local authority to set up a school. As they spend the liquid capital it turns into fixed capital, a bridge, a cement works or a school. Once you've fixed it you can't unfix it again for a hundred years or so when the bridge finally collapses, or the cement works is worn out, or the school is too old and inconvenient for further use.

Exercises

1. Find Russian translations of the following words and phrases of the text:

1) to misunderstand;

2) to hand on;

3) stock of tools and equipment;

4) fixed capital;

5) to perform work;

6) a cement manufacturer;

7) to blow;

8) a cement works.

2. Find English equivalents to the following words and phrases of the text:

1) оборотный капитал;

2) основной капитал;

3) разрушиться;

4) шахта;

5) передавать;

6) ничего подобного;

7) не правильно понимать;

8) парк инструментов и оборудования;

3. True or false statements. After reading the text agree or disagree with the following statements:

1) Labour is not included into production.

2) Every new 'mouth' born into the world brings two hands to work for it.

3) There are 4 resources of production.

4) Many people think of capital as money, but it is nothing of the sort.

5) Capital is the stock of tools and equipment.

6) Spent liquid capital is fixed capital.

4. Fill in the gaps in the text with the words given below:

Look for, hand on, ancestors, factors of production, liquid capital.

1) We are cleaner and richer then our.....

2) When an entrepreneur sets out to create goods and services he/she ... help from other people.

3) Capital is the stock of tools and equipment that one period of production ... to the next period.

4) In business money is called....

5) To create wealth entrepreneurs have to combine three....