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III. Vocabulary Reinforcement

A. Vocabulary

Match the words with their definitions.

total, adj.

producing at a rate that barely covers production costs

marginal, adj.

a decrease in price or value

subtract, v

the sum of all fixed costs and variable costs

break-even point, n

the gross income returned by an investment

revenue, n

the final amount; everything taken together

depreciation, n

the point at which revenue equals costs

overhead, n

having lost the job

laid-off, adj

to make an arithmetic operation in which the difference between two numbers is calculated

B. Word Families

Complete the chart.

Verb

Adjective

Noun

subtract

margin

fix

sale

analysis

produced

pay

beneficial

profit

C. Word Groups

1. Match the words having similar meanings.

gain

employee

benefit

earn

operate

quantity

decrease

profit

worker

reduce

amount

run

2. Match the words having opposite meanings.

increase

output

input

variable

subtract

cost

fixed

fall

rise

decrease

revenue

add

  1. Word Fields

Which of the cost items offered below are: 1)fixed costs, 2) variable costs?

Raw material to be processed; energy; personnel; amortisation of capital goods; plant space (if rented); plant space (if in ownership); advertising; R&D (research and development).

E. Word Usage

1. Complete: use an appropriate preposition where necessary.

of (5), for (2), since, on, by(2), to, per, as

  1. … a result, a firm knows the cost … producing each new unit … output as variable costs rise.

  2. Because … this, the owner might be able to keep the gas station open 24 hours a day … a fairly low cost.

  3. … the variable costs are small, they may be covered … the profits … the extra sales.

  4. … this reason, many stores are doing business … the Internet.

  5. Total revenue is equal … the number … units sold multiplied … the average price … unit.

2. Linking: match the first half of each sentence with the most appropriate second half.

  1. The goal of any business is …

a) is called overhead.

  1. Total fixed cost …

b) because different inputs have different costs

  1. Fixed and variable costs affect the way …

c) is the most useful measure of cost.

  1. Businesses find that marginal cost …

d) a business chooses to operate.

  1. Profit is the money …

e) reduce their fixed costs in many ways.

  1. Businesses engaged in e-commerce …

f) there is no cost for electricity.

  1. If the machines are not running, …

g) to earn as much profit as possible.

  1. Inputs affect production …

h) that businesses get from selling their products

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