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2. Find out the Russian equivalents.

1) a choice or judgment;

2) a small amount, a part of a whole;

3) being the only one of its sort;

4) the state of being pleased or contented;

5) sum of money, paid by citizens to the government for public services;

6) to signify;

7) to pay out money for goods, services, etc.

3. Make the following sentences negative and interrogative.

1. Every day we take part in economic activities.

2. There are other definitions of economics.

3. A man provides for his everyday needs by means of a complex pattern of production, distribution and exchange.

4. We live in economic system.

5. Economists talk and write about money, prices, wages, taxes, etc.

Unit 18. The factors of production

Traditionally, production means a creation of services or the changing the materials into products. Economic resources comprise human beings and all the things they use to produce the goods and services which people want. In economics, these resources are described as factors of production. They are often classified into three main groups: natural, human and manufactured.

Natural resources are the resources provided by nature and not by human beings. The word land is used to describe the gifts of nature.

Human resources consist of the energies, skills and knowledge of the working population. These resources are described as labour.

The word capital is used to describe manufactured resources. They consist of such things as factories, machines, railway, roads, power stations, docks and so on.

Many economists include a fourth factor of production – the entrepreneur. This is the person (or persons) who organizes land, labour and capital into units of production. These units of production are described as firms.

Vocabulary Bank

to comprise

включать, содержать

human being

человек

main

главный

gift

подарок

knowledge

знания

labour (Am. labor)

труд

railway

железная дорога

road

дорога, путь

entrepreneur

предприниматель

to bring together

свести вместе

Exercises

1. Answer the following questions.

1. What does production mean?

2. What comprises human beings and all the things they use to produce the goods and services?

3. How are the factors of production classified?

4. Are natural resources provided by nature or by human beings?

5. What do human resources consist of?

6. What do manufactured resources consist of?

7. What is an entrepreneur?

8. What does he organize into units of production?

2. Match the English verbs with their Russian equivalents.

tо comprise

использовать

to produce

обозначать, значить

to use

обеспечивать

to provide

включать, содержать

to describe

организовывать

to consist

хотеть

to want

описывать

to organize

производить

to mean

состоять

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