Ex.4. Match the words on the left with the definitions on the right.


factor of production a the worth of something in terms of money or other goods for which it can be exchanged
land b pay, usually of nonmanual workers, often expressed in annual terms
labour c the total satisfaction derived from the consumption of goods and services
capital d an input such as land or any natural resources, labour, capital, and entrepreneurship, combined in the production process to produce goods and services in an economy
information e payment for the work done
goods f equipment for doing something
services g a business firm
resources h accumulated wealth, especially as used in further production
salary i the human effort required to produce goods and services
value j tangible commodities or merchandise
wage k quantity of goods and services produced or provided by a business organization or economy
facilities l stock that can be drawn on
utility m the factor of production which comprises not just land itself but all natural resources. (Shoals of fish, natural forests, the atmosphere, and rivers).
enterprise n what is told, knowledge
output o tangible commodity or merchandise

Ex.5. Make up verb+noun collocations (there may be several variants).

to produce activities
to derive from the interests
to pursue food
to serve resources
to undertake goods and services
to acquire new skills
to obtain laws
to improve quantity of labour
to enforce knowledge
to increase human capital

Ex.6. Choose an appropriate word or phrase to complete the following sentences.

Capital stock, factor of production, human capital, human effort, labour, land, physical and mental, production process, resources, wages.

1. 'Factors of production' may also refer specifically to the primary factors, which are stocks including land, __________ (the ability to work), and capital goods applied to production.

2. The primary factors facilitate production but neither become part of the product (as with raw materials) nor become significantly transformed by the __________ (as with fuel used to power machinery).

3. 'Land' includes not only the site of production but natural __________ above or below the soil.

4. Recent usage has distinguished __________ (the stock of knowledge in the labour force) from labour.

5. Entrepreneurship is also sometimes considered a __________ .

6. Labour is __________ used in production which also includes technical and marketing expertise.

7. The payment for someone else's labour and all income received from one’s own labour is__________ .

8. Labour can also be classified as the __________ contribution of an employee to the production of the good(s).

9. Money, however, was not considered to be a factor of production in the sense of __________ since it is not used to directly produce any good.

10. Land is often referred to as "capital", in the sense that one can buy __________ and use it as a "capital investment".