XIX. Answer the following questions.

1. What are the factors of production?

2. What do natural resources include?

3. What is rent?

4. What are the essential characteristics of land?

5. What functions of labour do you know?

6. What is capital?

7. What is the difference between fixed and working capital?

8. What is interest?

9. How can you explain the term “entrepreneurship”?

XX. Join the halves.

1. Like physical capital such as factory and machinery, human capital	a. also pays interest on its debts.
2. The national labour force	b. working with their minds and muscles is labour.
3. Transferring things from one place to another	c. includes all people within the nation who are available for work, that is, the working population.
4. Unemployment exists when	d. demand for and supply of labour are not in equilibrium.
5. In a market economy, entrepreneurs	e. it is not used up in production process.
6. The contributions to production made by people	f. is important enough to be an indicator of economic development of a nation.
7. Land is durable, that is, functions	g. is one of the labour's functions.
8. Like all borrowers, the government	h. combine land, labour and capital to make profit.

XXI. Read the following sentences and say if they are true or false.

1. Factors of production are the basic inputs of labour, capital and natural resources used in producing all goods and services.

2. Natural resources are the things created by human efforts.

3.Fixed capital includes such durable means of production as land, buildings, machinery and equipment.

Unit IV

Topic. Demand. Supply. Price. Text A. Demand Text B. Supply and market price Text C. Why prices are important in a market economy

I. Practise the pronunciation of the following words.

a) stress the first syllable:

willingness, purchase, schedule, curve, downward, upward, common, feature, status, revenue, increase, decrease, substitute, relatively, rapidly, influence, complement;

b) stress the second syllable:

analysis (pi. analyses), ability, alternative, consumer, refer, specific, inverse, relationship, example, conspicuous, consumption, affect, particular, to increase, to decrease, necessity, delay, inferior, afford, acquire, determinant, bestow;

3. stress the third syllable:

economic, represent, illustration, elasticity, inelastic, inexpensive, transportation, expectation, opportunity.

II. Before reading the text answer the following questions.

1. What gives buyers signals to buy or not to buy goods and services?

2. What do you think causes prices to change in a market economy?

3. How can you explain the term „market price”?

III. Read and memorize the following words and word- combinations.

to bestow — надавати, дарувати, давати

ceteris paribus (hat.) (other things being equal) — за інших рів­них умов

complement — супутній товар

conspicuous — ефектний, разючий

demand (п) — попит, потреба, вимога

demand (v) — вимагати, потребувати, робити запит

demand curve — крива попиту

demand schedule — графік попиту

determinant — визначник, вирішальний фактор

Giffen good — товар Гіффена

the good in question — товар, про який йде мова

inferior goods — неповноцінні товари (товари, попит на які при зрості доходів споживачів падає)

normal goods — нормальні товари(товари, попит на які збільшу­ється із зростом доходів споживача)

opportunity cost — альтернативна вартість

to plot a graph — креслити графік