V. Вкажіть літеру правильного визначення кожного терміну (1 бал).

1. Production 2. Batch production 3. Control 4. Profit 5. Specification	Objects produced for sole.
	The power to make decisions about something and decide what should happen.
	A detailed description of the product, including the type of materials to be used, size, colour, etc.
	The process of making or growing things in large quantities, especially in a factory or on a farm, so that they can be sold.
	A very firm statement that you want something.
	An area of land where something is being built or could be built.
	How good or bad something is.
	A careful examination of something in order to understand it better.
	Money that you gain by selling things or doing business, after your costs have been paid.
	A method of organizing the work on any product so that it is divided into a number of operations and each operation is completed for a group of products before it is moved on to the next operation.

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Factors of production

In microeconomics, production is simply the conversion of inputs into outputs. It is an economic process that uses resources to create a commodity that is suitable for exchange. This can include manufacturing, storing, shipping, and packaging. Some economists define production broadly as all economic activity other then consumption. They see every commercial activity other then the final purchase as some form of production.

The inputs or resources used in the production process are called factors by economists. The myriad of possible inputs are usually grouped into four or five categories. These factors are:

• Raw materials (natural capital)

• Labour services (human capital)

• Capital goods

• Land

Sometimes a fifth category is added, entrepreneurial and management skills, a subcategory of labour services. Capital goods are those goods that have previously undergone a production process. They are previously produced means of production. Some textbooks use “technology” as a factor of production.

In the “long run” all of these factors of production can be adjusted by management. The “short run” however, is defined as a period in which at least one of the factors of production is fixed. A fixed factor of production is one whose quantity cannot readily be changed. Examples include major pieces of equipment, suitable factory space, and key managerial personnel. A variable factor of production is one whose usage rate can be changed easily. Examples include electrical power consumption, transportation services, and most raw material inputs. In the short run, a firm’s “scale of operations” determines the maximum number of outputs that can be produced. In the long run, there are no scale limitations.

1) Перепишіть твердження і позначте ті, що відповідають змісту тексту, знаком "+", а ті, що не відповідають змісту тексту, знаком "-" (1,6 бала).

1. Production is the process of making or growing things to be sold in large quantities.

2. The purpose of an economic process is to produce goods for consumption.

3. The process of production is the only stage in the creating commodities for sale.

4. Factors of production are the sources that are necessary for a manufacturing process.

5. Marketing can change all factors of production in the long run.

6. Both in the long run and in the short run a company’s activity is measured.

7. Electric power consumption, transportation services and most raw material inputs are examples of variable factors of production.

8. In the short run all of the factors of production can be adjusted by the management.