Does macbook come with Word already uploaded?

and do I need to install the software that comes with it? It seems to me that it is only to be used as back-up.

What Mort said.
office:mac has a demo of Word on board - as does iWork (Pages and Keynote), Apple's own cheaper, more Microsoft Works effort.
NeoOffice is the Mac-friendly version of OpenOffice and includes a suite of programs, including a Word-compatible WP. Oh, and its free, which in itself can be a worthy selling point - especially if you're happy not to further line the rather expensive pockets of Steve or Bill.
And if you really need is a basic WP, there is also AbiWord, a free cross-platform program - but I've enjoyed less success with its creation and translation of Word documents - if that is an issue for you. But it is tiny and efficient.
Regardless of what program you use, its worth remembering to uninstall the demos prior to installing the alternative. The demos will likely cause you problems with the full versions of office: mac and iWork thereafter, while reclaiming the lost space these take up will only make NeoOffice or AbiWord seem even more of a deal.

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