III. Understanding the main points

1. Answer the following questions:

1. What is the aim of producers?

2. What are three factors of production?

3. What is the problem of market economy?

4. What do changes in supply and demand act to?

5. What do producers do when there is a shortage?

6. What situation is called a “monopoly”?

2. Translate the following sentences into English:

1. Производители представлены предприятиями и фирмами.

2. В рыночной экономике, проблема решена рынком благодаря закону спроса и предложения.

3. Производители стремятся реагировать на повышение в цене, увеличивая количество выпускаемой продукции.

4. На некоторых рынках может быть только один продавец или ограниченное количество продавцов, которые могут предлагать товары и услуги.

5. Нужны три показателя производства, чтобы торговать товарами и услугами.

6. Каждая экономика встречается с проблемой, что, как и для кого производить.

3. Find the synonyms to the following words:

1. To purchase

2. To respond

3. To seek

4. Backbone

5. A good

6. Completely

Retell the text.

Text 8

Taxes

I. Vocabulary. Read and learn the following words:

Compulsory — обязательный

Body of persons — группа лиц

Public authority — орган власти

To tax — облагать налогом

To finance — финансировать

Defence — оборона

Direct tax — прямой налог

Individual — человек, частное лицо

Corporation tax — корпоративный налог

To generate — производить

Regressive — регрессивный

Indirect tax — косвенный налог

To impose — вводить (налог)

Pressure — давление

To argue (for) — приводить доводы в пользу

Link — связь

Specific — конкретный

Particular — отдельный

While — в то время как

National health service — национальная система здравоохранения

To match — увязывать

Equitable — справедливый

Incentive — стимул

To avoid taxes — избегать уплаты налогов (неумышленно)

To evade taxes — избегать уплаты налогов

Tax allowance — налоговая льгота

Tax exemption — налоговое освобождение

II. Reading. Read and translate the following text:

Taxes are a compulsory financial contribution by a person or body of persons towards the expenditure of a public authority.

The government has a choice of taxing income, wealth or consumption to finance its expenditure on defence, social services, municipal services etc.

The main forms of direct tax are income tax paid by individuals and corporation tax paid by businesses. Income tax in Great Britain dates from the 1790s and has until recently been the major source to generate tax revenue. Income tax can be progressive, proportional or regressive. The idea of a progressive tax is to take more from those who earn more.

Indirect taxes are imposed on certain products or services that people buy. The main ones are value added tax and excise duties.

Pressure to increase government expenditure may lead to a search of new taxes.

Some people argue for a more direct link between specific taxes and particular items of government expenditure. For example, taxes from motorists could be spent on roads and the transport system while the tax from alcohol and tobacco could be spent on the national health service. But it is impossible for the government to match all individual taxes with particular spending programmes.

The major principles of a tax system are that it should be equitable and reasonable. Then the incentive to avoid and evade tax would be less. The system of tax collection shouldn't be costly and shouldn't contain a lot of tax allowances and exemptions.