Factors of production (II)

Economists call the physical and mental effort that people put into the creation of goods and services labour. The rice for th use of labour is wages.

A factory, machine tools and equipment are capital resources. The term capital is often referred to money which is used to buy factories and other resources. Payment for the use of capital is called interest.

Entrepreneurship is the managerial or organizational skills needed by most firms to produce goods and services.

Vocabulary

factory - завод, фабрика

goods – товар, товары

interest – процент

machine tools and equipment – станки и оборудование

skills – квалификация, умение

wages – заработная плата

Comments:

1. Pay attention to the use of the noun “goods” – товар, товары - always in the plural form.

2. Remember spelling of plural endings:

factory – factories

community – communities But: day – days

TASKS

Task 1. Which nouns do not have the plural form?

information

sheep

ship

child

coal

money

service

effort

weather

accommodation

travel

price

Task 2. Put the following nouns in the plural form.

dictionary

society

economies

factory

agency

city

community

suly

salary

Task 3. Give synonyms to the following words.

factory

firm

people

wages

labour

effort

Task 4. Which one doesn’t go with the line?

1. economics, mental, science, labour;

2. price, money, sell, payment.

Task 5. Finish up the sentences and translate then into Russian.

1.The price for the use of labour….

2. The term capital is often referred….

3.Payment for the use of capital….

4. Entrepreneurship is….

Task 6. Match the terms in column A with their definitions in column B.

A

1. goods

2. services

3. labour

4. capital

5. manager

B.

a) money or property used to produce wealth

b) things that are produced in order to be sold or used

c) work involving a lot of physical and mental effort

d) business that involves selling help and advice, or delivering goods (intangible goods)

e) someone whose job is tol direct and control all or a part of a company

Task 7. Answer the following questions.

1. What is labour?

2. What is the price for the use of labour called?

3. What is capital?

4. What is the price for the use of it called?

5. What is entrepreneurship?

TEXT 5