- •Introduction
- •10. Look at the following topics:
- •Why Study Economics?
- •Why study economics?
- •Exercise 3. Answer the following questions.
- •Part 1 Unit 1 Economic Activity
- •Unit 2 The Science of Economics
- •Unit 3 Different Economic Systems
- •Unit 4 The Limits on Economic Freedom
- •Revision Units 1-4
- •In ...Formal ...Successful
- •Individual formal capital future ideal
- •Impression journal real commune imperial
- •Vocabulary
- •The Role of the Market
- •Unit 5 Central Control of the Economy
- •Unit 6 Mixed Economies
- •Revision Units 1-7
- •Exercise 3. Economic Vocabulary Quiz
- •Capitalism
- •Free-Market Economy
- •Part 2: unit 8 Utility and Prices
- •Unit 9 Supply and Demand
- •Unit 10 Some Economic Laws
- •Revision Units 8-11
- •Invest accept market manage employ
- •Vocabulary
- •Law of Demand
- •Unit 11 Labour and Capital
- •Unit 12 Markets and Monopolies
- •Unit 13 The Open Market
- •Unit 14 Money and Banking
- •Revision Units 12-13
- •Organisation of the european system of central banks (escb)
- •Revision Units 1-14
- •Factors of production
- •A Short History of the European Monetary System
- •Part 3 Supplementary Texts
- •1. Markets
- •Breaking records
- •Exercise 3. Match the words (1-10) with their definitions (a-j).
- •Profit a. The administration of the material resources of an individual, community or country
- •2. The economy
- •3. National-income accounting
- •Who Gets gdp?
- •4. Measuring economic activity
- •The Output Approach
- •The Income Approach
- •The Expenditure Approach
- •5. Economic fairness and the distribution of economic rewards
- •6. Public goods, information and uncertainty
- •Public Goods
- •Global public goods
- •7. Inflation
- •Money and Inflation
- •What Causes Inflation?
- •8. The global economy and
- •International trade
- •Regulation of international trade
- •Risks in international trade
- •Economic risks
- •Political risks
- •Introduction 4
Factors of production
Human activity can be broken 0)__B__ into two component parts, producing and 1)_____. When there is production a process of transformation takes place. Inputs are converted into an output. The inputs are classified and referred to as, land, labour, and capital. Collectively the inputs are called 2)_____ of production.
When land, labour, and capital are combined in order to produce something, a fourth factor is required. Goods and services do not 3)_____ themselves but need some conscious thought process in order to plan and implement manufacture. This thought process is often called 4)_____. Bill Gates the founder of ‘Microsoft’ the successful software company is an entrepreneur. It is hard to say what it is that makes Bill Gates more financially successful than say the local 5)_____ of computers.
The difficulty of classifying and quantifying entrepreneurship leads some economists to leave it out when listing the factors of production. Others prefer to include entrepreneurship as a factor, whilst recognizing the problems that doing so presents. Entrepreneurship however, might be defined as 6)_____ taking.
Land – the land itself, and 7)_____ materials such as oil and minerals beneath it. Trees grown by foresters are not classed as land because they have been deliberately grown. Trees in a natural rainforest are a natural resource and thus classified as land. The reward for letting others use land is called 8)_____.
Labour – human effort, mental or physical. Be careful not to confuse this with enterprise. The reward to labour is termed wages.
Capital – man made goods used to produce other goods. E.g., a tractor, a factory, an industrial robot. Not money, money is used to buy factors of production – it is not a factor itself. The reward for investing in capital is called 9)_____.
Enterprise (Entrepreneurship) – the risk taking activity that utilises land, labour and capital to produce goods or services in the expectation of a future reward. That reward is called 10_____ in economics.
0 A up B down C in D out
A selling B spending C consuming D buying
A factors B means C things D instruments
A sell B generate C produce D consume
A development B entrepreneurship C business D undertaking
A seller B buyer C industrialist D creator
A difficulty B risk C venture D interest
A natural B initial C valuable D raw
A licence B rent C hiring D charter
A interest B dividend C share D funds
A revenue B benefit C interest D profit
Exercise 10. Complete the text using the words from the box.
composite falling collapse management calculated revised alternative intervene restricted risk commercial weightings |