This is a sample test for the 1st semester exams in English. Read
this text carefully!
The effective combination of various resources which result in the creation of goods
and services is called production. These resources, which are either obtained from nature
or provided by man, are known as factors of production and have both common and distinct
characteristics. They all have to be paid for and as a result the process of production
adds to the value of the product. Also, to some extent, they can be substituted for one
another. Capital, which refers not only to cash but also to buildings, machines and other
materials, is the only factor which is deliberately and completely created by man. Labour
is distinguished from the other factors in that it is human and has the power to influence
its own employment. The only "original" factor of production is land. therefore,
its total supply is not responsive at all to any conditions caused by man, including its
own price.
A. Say whether the statements are true or false. If they are false say
why...
1. Nature is the source of all resources used in production.
2. The valueof a product is affected by the cost of the resources used in its
production.
3. The term "capital" describes cash.
4. Man creates capital on purpose.
5. An increase in the price of land will increase its supply.
B. Answer the questions fully.
1. What is meant by factors of production?
2. What do factors of production have in common?
3. Can any of the factors of production be left out of the production process? Why? Why
not?
4. What is the difference betwenn capital and land as regards their creation?
5. How is labour distinct from the other factors?
C. Match the words with their definitions.
D. Find the derivatives
1. finance - nature - not certain:
2. measure - predict - suit:
3. insure - possible:
4. alternate - solve:
5. fossil:
E. Find the missing economic terms
