These man-made resources consist of plant, tools, machinery, equipment, and all other resources wich not
consumed, but used to manufacture other goods.
Another classification of the resources of a society describes them as factors of production. The natural
resources we referred to are called Land in economics. The human resources are known as Labour, and the
man-made resources are known as Capital. Combining the factors of production to manufacture goods and
services" Is called production. Buying and using these goods and service? Is called consumption.
Consumers must make decisions.' too. Because of scarcity of resources a consumer or a society nay decide have
more of one commodity only by deciding to have less another. People, organizations and governments in
societies face this problem of choice.
One way of describing effective choice in economics is to express the cost "'of the commodity in terms of
another commodity which has been given up. If, for example a government decides to build more electricity
generating stations. It may find that it cannot build more hospitals. So the cost of building an electricity
generating station may be two hospitals. This is known as opportunity cost.
The things which the factors of production produce are called commodities. Commodities nay be divided into
goods and services. Goods, which may be subdivided into durable and nondurable goods, are tangible, for
example, clothes, bread , washing maching or cars. Services, which can be subdivided into commercial and
direct services include banking, insurance, transport and trade. Direct services are provided directly to 'the
A hairdresser can be classified as a direct service worker because he provides, and Is not a link between
manufactures and consumers.
Examples of direct service workers include writers, teachers, entertainers, window-cleaners, doctors and
journalists. In economics they are all producers.
So, the basic economic problems are connected with scarcity and choice, which arise from the fact that
resources are limited. An economist can help with the economic problem of choice by comparing the cost of one
thing, not in 'money term but by showing that other things will not be done. This is the opportunity cost we
The resources - land, labour and capital are called factors of production. When these factors are combined
production takes place, and commodities are produced.
ПОЯСНЕННЯ ДО ТЕКСТУ.
1. Arise out of ........
2. Limited resources -...
3. Supply of resources
4. Scarcity .............
5. Entertainment -..-....
6. Man-made resources
7. Tools ................
8. Factors of production
9. Goods and services
10. Consumption ..........
12. Make decisions
13. Cost ..................
SHOULD WORKERS BE OWNERS
Traditionally, labour and capital have been regarded as two separate factors of production. Owners have
provided the money and capital equipment for operating a company, and workers have provided the labour.
Furthermore, labour and capital have often been seen as adversaries - they have opposed one another on
questions related to salaries, wages pensions and other benefits and stock dividends. Now however, things
may be changing. Not only are workers being
given a limited voice in managing some companies, but they are also becoming part-owners."
One of the best ways for worker's to get "a piece of the action" Is called ESOP - Employee Stock Ownership
Plan. Ower, 8000 companies in the United States are at least partly owned by the employees. Over 10 million
workers are involved in these arrangements. Employees actually own the majority of the shares of stock3 in at
least 1000 firms.
People who favour these plants believe that employees will work harder, become more efficient, and be happier
in their jobs if they become part-owners of the companies they work for. Other have doubts about ESOP's.
Stockholders must take same of the ownership. If the company's profits are low or if there are losses, the
dividends will be low, and workers will gain little from their ownership. The value of each share may decline
in the stock market.
Recently researches from the National Center for Employee Ownership studied the effects of ESOP's. They find
that employees will not necessary work harder just because there is an ESOP, Some corporations have not
included stock voting rights with their ESOP's, and the workers do not see the ESOP as givingthem more power.
Some employers argue that "management's job is to manage" and that workers do not have the knowledge needed to
help to make managerial decisions. Some union officials charge that ESOP's do not give workers a real voice in
the company, and that the Interests of managers and employees are too different people can't be workers and
managers at the same time.
Nevertheless, the study showed that some ESOP's have been very successful. ESOP's work best when:
- The company makes largo contributions to the ESOP's:
- The employees can make money through the stock:
- The workers are giving stock voting rights3:
- The firm allows its employees to participate in company dads ion-making:
- The workers are kept will-Informed about the corporation's financial station. In some companies the
workers have agreed to accept lower wages and fewer benefits in return for shares of stock. Some workers have
even taken over companies that were falling, improved their productivity, and kept the plants going, thus
saving their jobs.
ПОЯСНЕННЯ ДО ТЕКСТУ:
1. The shares of stock
3. Stock vo flog rights