V. Answer the following questions:

1. What is the central task of any economy?

1. How is the society to deal with those who are outside of the economic system?

2. What is the definition of the word «poverty»?

3. What is a lack of mobility? When may it occur?

4. What is the way to change distribution in the society?

2. Is there any difference between cash transfers and in-kind transfers?

5. What can you say about the poorest recipient?

VI. Define the terms:

median income proportional taxation

welfare programme cash transfer

official poverty line lack of mobility

poverty network of transfers

VII. Translate into English:

1. HepiBHicTb y AoxoAax Maitme Tana ca/wa, jikok> Bona 6yna BiApa3y nicnd ppyro'i cbItoboT BiMHM. 2. y Q>paHu,fi ra AMepnui, BMaBnneTt.cn, icwye H3M6int>iua HepiBHicrb y po3noA'-ni npn6yTKiB nopiBHHHo 3 Jhujmmh KpainaMM. 3. CTa6inbHicTb b onepwaHHi neBHoro BJACOTKa cy«ynHoro npn6yiKy ko>k-hok> n'nToio HacTWHOio waceneHHSt e oahim is BpaMtafOMMX cfcaK-tib aMepMKaHCbKoT eKOHOMiKn. 4. OnoAaTKysaHHB nponop-ujiiHe, fiKLuo oco6n 3 6rnbUJ bwcokmm npn6yTKOM cnna4yroTb y BwrnsiAi noflarKJB TaKy caMy HacTKy npn6yTKiB, hk oco6m 3 mshujmmm npn6yTKaMM. 5. flni 6iahwx Kpame OAepwyBaTM AonoMory rpiujMM, Him TOBapaMM. 6. flaBanTe rpoiui Ta-kmm imhom, iuo6 tow, xto opiepwye, 3as>t<AM mbb CTHMyn npau,K)BaTK.

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VIII. Read and dramatize the following dialogue:

A.; Tell me please, why do we know much less about the

distribution of wealth than we do about the distribution

of income? D.: We know much less about it because the d3ta on wealth

holdings are not readily available. Indeed, most of the

evidence we have on wealth distribution for the U.S.

economy is based on work done in the early 1960s. A.: Subsequent calculations based on data available in 1969

provide essentially the same picture of the distribution of

wealth. The top 0,5% of the population held about 23%

of the wealth and the top 1% of the population about

30% of the wealth. D.: What is the situation in the U.S. economy concerning the

effects of sex discrimination? A.: On average, working women earn only $ 0.70 for every

$ 1.00 earned by working men. What accounts for this

difference? D.: Two economists studied this question using data from the

mid 1970s. At that time, the differences could be accounted

for in the following way. First, the work history of women

differs considerably from that of men. A.: Yes, it does. It's a fact of common knowledge that while

most men enter the work force shortly after completing

school and continue to work full time thereafter, women

have more varied work experience. D.; The average white male has spent only six months out of

the labor force, most of that time immediately after

completing school; in contrast, fhe average white female

takes almost a six-year break in mid-career, usually to

raise children. A.: All of these and other factors combined still leave women

with wages $ 174 lower than men. D.: What does this mean? A.: It suggests that markets do not necessarily reward workers

just on the basis of productivity and that some sort of

discrimination may exist.