Language practice

I. Match the words their definitions

a) measure 1) to determine the place or position

b) store 2) to manufacture, to make

c) value 3) a supply to be used in future

d) borrower 4) admission, entrance

e) access 5) the quality of something that makes it valuable

f) to produce 6) the range, dimension, extent or capacity of any

thing

g) to provide 7) the state of being available

h) availability 8) to supply or furnish with what is needed

i) to locate 9) a person who receives money with intention of

returning it

II. Complete the sentences below using the information of the text

1. Organizations that manufacture products or construct roads, buildings are called … . 2. Private … firms are owned by individuals who hope to make a profit. 3. Land, …, … and enterprise are factors of production. 4. Entrepreneurs set up private sector … in the hope of making profits. 5. Entrepreneurs try to substitute a cheaper … for a more expensive one. 6. … helps advanced economies to function more efficiently. 7. People require a medium of … to buy what they need. 8. Money also functions as a measure of … . 9. To encourage savings to take place, … is paid on them. 10. People are the labour factor of … .

III. Say whether these statements are true or false, and if they are false say why.

1. Primary organizations manufacture products or construct roads. 2. Commercial services are banking, transport and insurance. 3. Another way of classifying organizations results from the UK’s mixed economy. 4. Private sector firms are owned by individuals who provide a service for the community. 5. Entrepreneurs as business owners and decision-takers bear the risk of making a loss. 6. Entrepreneurs compare the relative prices (or costs) of each factor of production and, where possible, substitute a more expensive factor for a cheaper one. 7. Countries tend to avoid specialization in products or services. 8. As a result of specializing, however, a country cannot produce everything it needs for its population. 9. People also specialize, and become independent. 10. Money serves only as a store of value. 11. Where tasks are repetitive, there is scope to replace machines with people. 12. Higher labour unemployment leads to higher social costs. 13. One of the key decisions an entrepreneur must make is where to locate the business. 14. The availability of suitably skilled labour is influenced by the business location.

IV. Answer the following questions

1. According to what are organizations in the economy classified? 2. What can you say about primary organizations? 3. What do secondary organizations do? 4. What kind of services do tertiary organizations provide? 5. Who owns private sector firms? 6. What is the difference between private sector firms and public sector organizations? 7. What are the four factors of production? 8. What can you say about specialization? 9. Why do countries become interdependent? 10. What for do people need medium of exchange? 11. What are the functions of money? 12. What can lead to higher labour unemployment? 13. What factors influence location of the business?