15. Put the verb in appropriate form:

1.Economic society (to present) itself as a means whereby people are able to carry out the tasks of production and distribution.

2.If we look at the very different political and social structures and the way in which this systems (to develop) over the years, we are tempted to say that people (to make) use of a very great varieties of economic systems.

3.The basic types of economic organization (to describe) as Traditional Economy, Market Economy, Command Economy and Mixed Economy.

4.Traditional methods of production and distribution (to devise) in the distant past.

5.They (to become) the accepted ways of doing things by a long process of trial and error.

6.In this societies we ( to find) that all (to base) upon the tradition.

7.The basic problems ( not to arise) as problems to be discussed and argued about.

8.One (to follow) the path that one (to be born) to follow.

9.There (to be) time-honored methods of sharing out the produce.

10.Even in advanced countries tradition still (to play) some part in determining the work of the economy.

11.Year by year little (to change) in the process of distribution.

Unit 3. The factors of production.

1.Read the following words:

reason, consumer, incentive, efficiency, available, measure, average, feature, obviously, employment, eligible, equal, decline, relationship, quantity, apparent, relatively, therefore

2. Read and translate the word combinations:

human effort, goods and services, a factor of production, in terms of efficiency, additional consideration, the average numbers of hours, the size of the total population, full-time employment, legally controlled, an important determinant of the supply of labour, the gradual reduction, an extension of annual holiday period, for the time being

3. Determine the part of speech:

legal, necessary, solely, community, composition, retirement, extension, annual, apparent, attractive, remuneration, goods

4. Form nouns from the following verbs:

direct, apply, cost, depend, fall, measure, offer, supply, operate, consider, compose, engage, retire, mean, reduce, decline, improve, increase

5. Change into Passive Voice:

1.A businessman buys and sells the services of labour and not labour

itself.

2.The firm cannot own labour in the same way as capital and land.

3.The government controls the full-time employment.

4.Specialists discussed the relationship between quantity supplied and price

5.An individual worker offers the amount of labour, when wage rates are relatively low.

6.Economists will judge this important questions solely in terms of efficiency.

7.People direct labour to the production of goods and services.

Labour

Labour is human effort – physical and mental - which is directed to the production of goods and services. But labour is not only the factor of production, it is also the reason why economic activity takes place. The people who take part in production are also consumers, the sum of whose individual demands provides the business person with the incentive to undertake production. For this reason when we are considering real-world economic problems it is necessary to treat labour somewhat differently fro the other factors. There are social and political problems which have to be taken into account. For example, the question of how many hours per day a machine should be operated will be judged solely in terms of efficiency, output and cost. The same question applied to labour would raise additional considerations of individual freedom and human rights.

It must be borne in mind that it is the services of labour which are bought and sold and not labour itself. The firm cannot buy and own labour in the same way that capital and land can be bought and owned.

The supply of labour.

The supply of labour available to an economy is not the same thing as number of people in that community. The labour supply is a measure of the number of working hours which is offered at given wages over some period of time. It is determined, therefore, by the number of workers and the average number of hours each worker is prepared to offer. Both of these features are subjected to change and, at any moment of time , they will depend upon a number of things.