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КОНТРОЛЬНОЕ ЗАДАНИЕ № 6 (ВАРИАНТ 2)
I. Suggest the Russian equivalents for the words and word-combinations given below (in
writing).
Furnishing the information, fire protection, national defense, to tend to fluctuate, business
failures, national debt, income tax, property tax, regressive effect, sharp controversy.
II. Match the words with their definitions.
1) VAT
2) sales tax
3) income tax
4) progressive
tax
5) proportional
tax
6) budget
a) a regressive tax added to the price of goods at the time they are
sold
b) one that takes a large percentage of a higher income and a
smaller percentage of a lower income
c) tax levied on the value added to goods at every stage of
production
d) one that takes the same percentage of all incomes regardless of
size
e) a financial plan that summarizes income and expenditures over
a period of time
f) a tax on the income earned by individuals and corporations
III. Make up seven sentences of your own with the expressions given below.
The economic role, the market system, the free enterprise system, governmental programs,
business conditions, direct payments, the national debt, the principal source, income taxes,
proportional taxes, to equal expenditures.
IV. Choose one of the words or word-combinations given below to make the sentences
complete:
VAT, taxpayer, a deficit, redistribute, a progressive tax, the budget
1. When government receipts equal expenditures, __________ is balanced.
2. One of the strongest arguments in favour of __________ is that it is much easier to
administer than the income tax.
3. When receipts are less than expenditures, the difference is __________ .
4. The federal income tax is the best known example of __________ .
5. Government programs to relieve poverty __________ income from wealthy people to
the needy.
6. Sales taxes take a larger share of earnings from a low-income __________ .
V. Read and translate the whole text orally. After that translate paragraphs 1, 2, 3 in writing.
THE ROLE OF GOVERNMENT
1. Let’s consider the role of government as applied to the government of the United States
of America.
The economic role of its government (local, state, and federal) has grown dramatically in
recent years. We’ll have to spend a few moments describing what that role is. You will be able
to learn how government acts to:
- safeguard the market system;
- provide public goods and services;
- redistribute income;
- stabilize the economy.
2. Safeguarding the Market System. We have seen that the free enterprise system, and the
laws of supply and demand that govern it, depend upon competition. Government promotes and
protects competition by 1) establishing and enforcing “rules of the game”; 2) furnishing the
public with information about market conditions and the state of the economy; and 3) helping to
settle disputes.
Providing Public Goods and Services. Public goods and services are those benefiting large
numbers of people that would not, or could not, be provided by private enterprise. Public
schools, roads, police and fire protection, and national defense are examples of public goods and
services.
Redistributing Income. Every modern society should help its poor citizens. Governments
programs to relieve poverty redistribute income from those earning more than enough on which
to live to those in need.
Stabilizing the Economy. Business conditions, particularly in market economies, tend to
fluctuate, rise and fall. When the swings become severe, unemployment can rise, business
failures often increase, and the population in general can suffer. Government is able to limit the
swings between the economy’s highs and lows.
3. The principal items of expense to the federal government can be classified as direct
payments to individuals, national defense and interest on the national debt. The single largest
item of expense to the states and localities is education.
Taxes provide the principal source of income to all levels of government. Income taxes are
the principal source of federal tax income. State and local governments rely on sales, income and
property taxes as their principal sources of revenue.
4. Most taxes can be classified as progressive, proportional or regressive. A progressive tax
takes a larger percentage of a higher income and a smaller percentage of a lower income. The
federal income tax is the best known example of a progressive tax.
A proportional tax takes the same percentage of all incomes regardless of size.
A regressive tax is one that takes a higher percentage of a low income and a lower
percentage of a high income. Although they are not based on a person’s income, sales taxes have
a regressive effect because they take a larger share of earnings from a low-income taxpayer than
from a high-income taxpayer.
One of the most talked about of the recent proposals is the value-added tax (VAT). This
tax, which is very popular in Europe, is levied at every stage of production on the value added to
materials and supplies. One of the strongest arguments in favour of this tax is that it is much
easier to administer than the income tax, and far more difficult to dodge.
5. When government receipts equal expenditures, the budget is balanced. When receipts
exceed expenditures, the difference represents a surplus; and when they are less than
expenditures, the difference is a deficit. Federal deficits have pushed the total national debt to
record levels. Whether these deficits will prove to be helpful or harmful to the nation’s economic
health has been a matter of sharp controversy.
VI. Answer the questions in writing.
1. What is the role of government in economics?
2. Can you give examples of public goods and services?
3. What do taxes provide?
4. How can you classify most taxes?
5. What is value-added tax?