Unit 2. FACTORS OF PRODUCTION

TEXT A: Factors of production TEXT B: Entrepreneurship TEXT C: Factors of production for an innovation economy BUSINESS COMMUNICATION: In the office GRAMMAR: Present Tenses. The Present Perfect and the Present Perfect Continuous Tenses

“The supply-side claim is not a claim. It is empirically true and historically convincing that with lower rates of taxation on labor and capital, the factors of production, you'll get a bigger economy.”

Jack Kemp(1935 –2009),an American politician, a collegiate and professional football player

LEAD-IN

1. Would you like to own your own business? Why or why not?

2. Would you prefer to buy an existing business or start one yourself?

3. What product or service would you provide?

4. Where would you want to locate the business and for what reason?

5. How would you recruit employees?

PRE-TEXT EXERCISES

A. Reading drills

Ex.1. Practice reading the following words.

y/i [aɪ] rye, fly, sky, dry, try, ply, dye, by-product, type, byte, cycle; lifestyle, item, size, dive, sizable

[aɪ]falsify, intensify, notify, signify, specify

[ɪ] myth, symbol, system, syndicate, Sydney

[ɪ]security, property, economically, secondary, duty, baby, lady, study, noisy, lobby, pony, sorry, lorry, sym'phonic

[aiə] tyre, tire, hire, fire

y[j] yes, yet, you, yell, yelp, yield, youthful, yard, yawn

u[ju:] use, mule, tune, due, suit

u[ʌ] but, must, run, sun, up

u[u:] rule, true, fruit, blue, flu

[ɔ]–[ʌ] not – nut, boss – bus, dock – duck, lock – luck, sock - suck

Rhyme, single, rhythm, rivalry, yawn, risky, syllable, sight, historically, multiply, mind, pretty, think, nymph, yesterday, child, pyjamas, memory, kind, wish, analytic, behind, picture, category, yucca, desire, light, exactly, king, candy, miner, syndicate, typist, hymn, rice, myself, risk, pyramid, nylon, mineral, line, hydrant.

Ex.2. Read the words in the groups below. Pay attention to the word stress.

a) words with the stress on the first syllable:

access, acre, actual, balance, benefit, broker, capital, dwelling, enterprise, forecast, hectare, tangible, labour, luxury, maintenance, management, owner, ownership, parking, property, suburbs, quality, quantity, scarce, scarcity, service, urban, utilize;

b) words with the stress on the second syllable:

accumulate, accomplishment, consumer, commodity, delivery, environment, estate, inherit, inheritance, intangible, location, necessity, securities, utility;

c) polysyllabic words with the main and secondary stress:

acquisition, competition, exploitation, externalities, information,entrepreneur, entrepreneurial, entrepreneurship, privatization, profitability, relocate, substitution, telecommunication, termination, urbanization,undercapitalization, utilization.

Ex.3. Read the following two-syllable words in the box. Pay special attention to the word stress - it is different for noun and verb.

Verb	Noun
conduct	conduct
discount	discount
object	object
permit	permit
produce	produce
reject	reject
subject	subject
transport	transport