VIP Class Notes (JJ)

Passage One
What is meant by the term economic resources? In general, these are all the natural, man-made, and human resources that go into the production of goods and services. The obviously covers a lot of ground; factories and farms, tools and machines, transportation and communication facilities, all types of natural resources and labor. Economic resources can be broken down into two general categories: property resources- land and capital-and human resources-labor and entrepreneurial skills.

What do economists mean by land? Much more than the noneconomist. Land refers to all natural resources that are usable in the production process: arable land, forests, mineral and oil deposits, transporting, and distributing goods and services. Capital goods differ from consumer goods in that the latter satisfy wants directly, while the former do so indirectly by facilitating the production of consumer goods. It should be noted that capital as defined here does not refer to money. Money, as such, produces nothing.

The term labor refers to the physical and mental talents of humans used to produce goods or services (with the exception of a certain set of human talents, entrepreneurial skills, which will be considered separately because of their special significance).

Thus the services of a factory worker or an office worker, a ballet dancer or an astronaut all fall under the general heading of labor.

1.    What is the author’s main purpose in writing this passage?  D
A.    To explain the concept of labor
B.    To criticize certain uses of capital
C.    To contrast capital goods and consumer goods.
D.    To define economic resources

2.    In line 3, the author uses the expression “ This obviously covers a lot of ground….” to indicate that_______C_____.
A.    The factories and farms discussed in the passage are very large
B.    Economic resources will be discussed in great depth
C.    The topic of economic resources is a broad one
D.    Land is an important concept in economics

3.    When noneconomists use the term “land,” its definition_______D______.
A.    Is much more general than when economists use it
B.    Is much more restrictive than when economists use it
C.    Changes from place to place
D.    Includes all types of natural resources

4.    Which of the following could be considered a capital good as defined in the passage? B
A.    A railroad   b. money     c. a coal mine      d. human skills

5.    The skills of all the following could be considered examples of labor, as defined in the passage, EXCEPT_______B__________
A.    Artists and scientists    b. workers who produce services, not goods    c. office workers       d, entrepreneurs

Passage two

Innovative does not necessarily mean radical or expensive, nor do the best ideas come from the top. A woman on the shop floor at Ford suggested putting symbols of different engine parts so that drivers would not need a manual to do something simple, such as checking the oil. It proved so popular it is now common practice.
Ford’s open policy towards employees’ ideas generates “tens of thousands of e-mails a month”, according to Ed Sketch, director of Ford’s Training and Development Division in America and Europe. The company has even employed people to examine them. Money-saving ideas are rewarded with big bonuses or a new car.

Companies might want to hire innovative thinkers, but do they really want non-conformists on board? Peer Granger, head of Insight Training, which runs innovation workshops for companies, believes that the risk of not having them on board is greater. “It’s not like the old days, where companies could mass-produce the same old products year after year and customers would buy them. If companies don’t innovate, they die. Just look at the main street. And almost by definition, you have to be difficult (难弄的) in order to invocate because it is about challenging the current situation. The problem is that innovators are usually seen as trouble-markers and are often the first people to go if a company has to downsize in times of bad business. There’s such a blame culture that people are scared to step outside the norms. In our workshops we show people the value of breaking rules.”

However, Granger thinks that difficult, innovative people would probably get nowhere without their conformist colleagues. “Crikey, you need the other people to say, ‘ Hang on, maybe this isn’t a good idea’, which can save you a lot of argument later. And turning an idea into reality may involve office politics, which difficult people may not be good at.”

1.    The example of the woman who made a suggestion shows that_____D_____
A.    Innovative means radical
B.    Innovative is expensive
C.    The best ideas come from the bottom
D.    A person not from the top can also be innovative

2.    Ford even employs people to_____C______
A.    Offer new ideas
B.    Find innovative people
C.    Look for genuine ideas from numerous suggestions
D.    Distribute bonuses or new cars

3.    In a blame culture, people_____C_____
A.    Are encouraged to make new things
B.    Are praised for breaking rules
C.    Are conventional
D.    Are often blamed

4.    Innovative people need conformist colleagues to______C________
A.    Support their new ideas
B.    Argue with them
C.    Work together to turn an idea onto reality
D.    Cool them down so that they can think twice about the new ideas

5.    According to the passage, who is best at office politics?  B
A.    Innovative people
B.    Conformists in the company
C.    Director of Training and Development Division
D.    Head of Insight Training

Passage three
To understand the marketing concept, it is only necessary to understand the difference between marketing and selling. Not too many years ago, most industries concentrated primarily on the efficient production of goods, and then relied on “persuasive salesmanship” to move as much of these goods as possible.  Such production and selling focuses on the needs of the seller to produce goods and then convert(转换) them into money.

Marketing, on the other hand, focuses on the wants of consumers, It begins with first analyzing the preferences and demands of consumers and then producing goods that will satisfy them. This eye-on-the-consumers approach is known as the marketing concept, which simply means that instead of trying to sell whatever is easiest to produce or buy for resale, the makers and dealers first endeavor to find out what the consumer wants to buy and then go about making it available for purchase.

This concept does not imply that business is benevolent(慈善的) or that consumer satisfaction is given priority over profit in a company. There are always two sides to every business transaction- the firm and the customer- and each must be satisfied before trade occurs. Successful merchants and producers, however, recognize that the surest route to profit is through understanding and catering to customers. A striking example of the importance of catering to the consumer presented itself inmid-1985, when cola changed the flavor of its drink. Then non-acceptance of the new flavor by a significant portion of the public brought about a prompt restoration of the Classic Coke, which was then marketed alongside the new. King Customer ruled!

1.    The marketing concept discussed in the passage is, in essence, ____C_______
a.    The practice of turning goods into money
b.    Making goods available for purchase
c.     The customer-centred approach
d.    A dorm of persuasive salesmanship

2.    What was the main concern of industrialists before the marketing concept was widely accepted?  B
a.    The needs of the market    b. the efficiency of production   c. the satisfaction of the user    d. the preferences of the dealer

3.    According to the passage, “to move as much of these goods as possible”(line 4, Para.1 )means “____A_______”
A.    To sell the largest possible amount of goods
B.    To transport goods as efficiently as possible
C.    To dispose of these goods in large quantities
D.    To redesign these goods for large-scale production

4.    What does the restoration of the classic coke best illustrate?  D
A.    Traditional goods have a stronger appeal to the majority of people
B.    It takes time for a now product to be accepted by the public
C.    Consumers with conservative tastes are often difficult to please
D.    Products must be designed to suit the taste of the consumer

5.    In discussing the marketing concept, the author focuses on_____B____
A.    Its main characteristic   b. its social impact   c. its possible consequence         d. its theoretical basis