Vocabulary:

administration of justice – отправление правосудия

in return – в ответ

food stamps – продуктовые карточки, продовольственные талоны, по которым малоимущие граждане, как, например, в США, имеют право получать продукты питания в определенных магазинах, но не могут обменять их на деньги

to make room for – зд. создать условия для

the rich – богатые

the poor – бедные

reduce the deadweight tax burden – снизить налоговое бремя

result – результат

as a result – в результате

to result – происходить в результате

to result from – проистекать; обусловливаться чем-л

to result in – приводить к чему-л

most – 1. самый (употребляется перед прилагательными в превосходной степени после the); 2. весьма, крайне (перед прилагательными в превосходной степени после the и перед наречиями); 3. всего, всех (перед наречиями); 4. большинство, большая часть (перед существительными)

mostly – главным образом

that is – то есть

that is why – вот почему

so that – так, что(бы)

no - никакой (употребляется перед существительными)

mainly – главным образом, в основном

direct tax – прямой налог

indirect tax – косвенный налог (налог на товары или услуги, а не на частное лицо или компанию)

levy v – 1. облагать налогом; 2. собирать, взимать налоги

to levy a tax on smb – облагать кого-л налогом, взимать налог с кого-л

value added tax (VAT) – налог на добавленную стоимость (НДС)

sales tax – налог с оборота, налог на продажи (производители платят его, когда изделия считаются законченным товаром; оптовики – при продаже товара розничному продавцу; розничные продавцы – при продаже товара покупателям)

state n – государство

retirement pension – пенсия за выслугу лет

contribution – взнос

a contribution to a fund – взнос в фонд

social security fund – фонд социального обеспечения (государственный фонд для выплаты пособий по болезни и безработице, пенсий, пособий женщинам и детям)

borrowing n - заимствование

borrow v (smth from smb) – брать взаймы (что-л у кого-л), одалживать (что-л у кого-л)

comprise v (smth) – включать (что-л), состоять (из чего-л)

transfer payment – переводной платеж (производственный платеж, который не связан с оплатой товаров и услуг, например, пенсии, пособия по безработице, субсидии фермерам и т.д.)

pay (paid, paid) v (for smth) – платить (за что-л)

public goods – общественный товар, товар общественного пользования (благо, к которому одновременно имеют доступ все люди в данной экономике)

still cj – все де, тем не менее, однако

national defense – национальная оборона

unemployment benefit – пособие по безработице

cut (cut, cut) v – сокращать, снижать, уменьшать, урезывать

cut n – сокращение, снижение, уменьшение

reason n (for smth) – причина (чего-л)

for some reason – по какой-л причине

exhaust v – истощать, исчерпывать

productively adv – производительно, продуктивно

productive a – производительный, производственный

whereas cj – тогда как, в то время как

purchasing power – покупательная способность (стоимость денег, измеряемая в соответствии с количеством товара, который можно на них приобрести)

nearly adv – почти, чуть не

share n – доля, часть

tax rate – норма (ставка) налога (налогообложения) (налог, взимаемый на единицу облагаемой налогом суммы, выражаемый в процентном отношении, например, налог $5 на сумму в $100 значит, что ставка налога составляет 5%)

initially adv – с самого начала, вначале, первоначально

initial a – начальный, первоначальный, исходный

tax revenue – налоговые поступления, доходы от налогов

eventually adv – в конечном счете, в итоге, в конце концов

eventual a – конечный, окончательный

to tax v (smth) облагать налогом (что-л)

taxed commodity or activity – продукция или деятельность, облагаемая налогом; syn. taxable a – подлежащий обложению налогом

raise v – собирать, взимать (налоги, плату)

Exercise 1: Fill in the gaps with the words from Vocabulary:

1. The rise in oil prices raised the … of the OPEC and reduced ... of oil-importing countries such as Germany and Japan. The world economy, … … …, was producing more for the OPEC and less for Germany and Japan.

2. Taxes ... on goods and services are known as … … ..., those ... on in­come are called ....

3. Due to a ... capital use and more know-how, wages in West Germany were three times as much in ... jobs as ... in the East when the two Germanies united (объединяться) … … …, many East Germans moved (переехать) to the West.

4. In the 1980s British workers in the gas and electricity industries earned ... £20 a week more than the national average.

5. The British national wealth ... private assets (houses, factories, jewels) and national assets (the London Bridge, the paintings in the British Museum, the roads and telecommunications networks, and much more).

6. ... the nominal GNP is computed using the actual selling prices, the real GNP is computed using prices that existed in some pre­determined base year. The … … making a distinction between the nominal and real GNP is to know the general price increase, or inflation.

7. Keynes thought classical economists to consider ... in national output of the different factors of production rather than the forces determin­ing the level of general economic activity.

8. Governments affect for whom output is produced through taxation and … ….

9. Non-renewable resources are those ... in the process of use.

Exercise 2: Match the two parts of the sentences:

1. Government spending is	a) goes to households as employees, owners, or renters.
2. Spending and taxing,	b) payable to women at the age of 60 and men at the age of 65.
3. Whereas a sales tax is raised only when a final good is sold to the consumer,	c) the VAT is raised at different sta­ges of the production process.
4. The governments in northern Eu­rope often give out freely a great share of gross output privately pro­duced as public goods,	d) the sum of government purchases of goods and services and transfer payments.
5. What is not paid as corporate taxes or saved by firms	e) as its contribution to the Fund of Obligatory Medical Insurance (страхование).
6. Social security payments and un­employment benefits are	f) those comprise medical services, school, child care, public trans­ port, national defense.
7. Every firm in Russia is required to allocate two percent of the amount to be paid out as wage	g) believed to reduce incentives to work since they contribute to in­ come.
8. A state retirement pension in most European countries is	h) the government plays an essential role in allocating resources in the economy.

Exercise 3: Make synonyms and antonyms pairs with the following words:

to manufacture, considerable, to buy, advantage, almost, mostly, so that, great, home, expenditure, provided, unemployed, to need, to produce, to supply, to lead to, taxable, as, if, unproductive, efficient, unlike, to purchase, spending, to cut, to levy, initially, taxed, productive, employed, to require, disadvantage, to sell, like, to provide, since, in order to, mainly, nearly, to impose, to reduce, eventually, domestic, to give rise to

Exercise 4: Find sentences where the word most means:

a) «большинство, большая часть»

b) «весьма, крайне»

1. Most of public expenditure is financed through taxation and govern­ment borrowing.

2. In a situation of full employment, the supply of most goods and servic­es will be inelastic.

3. Most often we look at the GNP per capita, or the average income in a country.

4. In 1986 there was a most sharp fall in world oil prices.

5. In most European countries and the USA, work experience (трудовой стаж) is required to receive unemployment benefits. For this reason, more people have an incentive to go into employment at an earlier age.

6. The International Monetary Fund (IMF) is considered to be one of the most influential multinational institutions stimulating international trade and maintaining balance-of-payments equilibrium.

7. The arts are a most important economic activity: their contribution to Britain's GDP was reported to be nearly £6,000 million in 1990.

8. As a result of the Industrial Revolution at the end of the 18th century, most workers became employed in large factories.

9. With some groups of population, payments from social security funds may be a most important contribution to household incomes.

Exercise 5: Translate the sentences into Russian paying attention to the meaning of the noun result and the verb to result:

1. A tax rate over 45 percent is known to result in a reduction in the taxes raised.

2. If labour supply is inelastic, there will be an increase in wages as a result of improvements in technology.

3. When transfers (e.g., unemployment benefits, disability payments) are added to labour incomes and distributed profits, the result is personal income.

1. Due to the tax reform the taxed income was lowered and an increase in tax revenue resulted though it was not as big as the government had expected it to be.

1. Higher profit resulted from decreased transportation expenses.

Exercise 6: Say in which sentences the words that and those are substitutes; translate the sentences into Russian.

1. Part of the profit goes to those who have provided the initial capital needed to start a business.

2. If markets allocate resources efficiently so that consumers' requirements are met at minimum cost, why should governments intervene in the economy at all?

3. To have on-farm and off-farm jobs at the same time is common prac­tice in rural areas of the USA and Canada, especially among those working on small farms.

4. One reason why labour is a special commodity is that wages include the costs of investing in human capital, which brings in profit over a long period of time.

5. Unlike OPEC countries, oil-importing nations had to give up (отказаться от) much of their production in exchange for the imports that they required when prices for oil had risen.

6. Tax revenue following a reduction in taxable income and a rise of the number of taxpayers was expected to be much higher than that raised previously.

Exercise 7: Choose the correct word:

1. Public spending has to be financed (nearly / mostly) through taxation and government (borrowing / share).

2. Over the last 100 years real wages have increased between five and fifteen times, (whereas / still) working time has been cut by nearly half.

3. Because unemployment often results in personal trauma, (unemploy­ment benefits / retirement pensions) are said to be needed for psychological reasons.

4. Natural resources research in the USA in the 1930s was (nearly / ini­tially) based on collecting information from various sources.

5. Due to a more (productive / required) capital and more know-how, wages in West Germany in the early 1980s were about three times as much as (those / that) in the East. (Whereas / As a result), many East Germans moved to the West.

6. Productive processes are (mostly / still) prohibited because they are dan­gerous to workers or to the environment.

7. Long-term unemployed workers, who gradually (постепенно) lose their human capital and contact with the active labour force, (mainly / even­tually) become unable to fill any vacancy.

8. The (social security funds / reasons) for which people may leave labour force are as follows: retirement, illness, return to school, child care, work in a home garden, etc.

9. (Initially / Eventually) minimum wages were introduced (productively / mainly) to protect young people from exploitation.

Exercise 8: Translate the following sentences with the word no into Russian:

1. Transfer payments are the payments for which no direct economic ser­vice is provided in return (в ответ).

1. No workers means no output.

2. A mother may work very hard caring for her children but she receives no wages for her work.

3. Closed economy is an economic abstraction used to analyze a country with no relationship with the rest of the world.

4. Because no two jobs and no two persons are the same, to find a job is not always easy.

2. No economy relies entirely on command.

Exercise 9: Translate the following sentences into Russian, paying special attention to Complex Object.

1. The budget deficit is known to be the excess of government expenditure over government revenue.

2. Markets are said to bring together buyers and sellers of goods and ser­ vices.

3. The massive influx (зд. включение) of women into the labour force is sometimes assumed to result in unemployment.

4. Alcohol and tobacco are usually believed to be products with a very inelastic demand.

5. An increase in the wage rate is expected to reduce the quantity of labour demanded.

6. A subsidy is known to be money or other resources provided by the government to support a business activity or a person.

7. Demand for imports is expected to rise when domestic income and output rise.

Exercise 10: Translate the sentences into Russian:

1. Taxes of the firm to central government (corporation tax) plus taxes to local government (tax on the property the firm owned) were expected to come to £25,000 that year.

2. Part of the income of households is taxed by the government, which reduces the income share to be allocated to consumption expenditure.

3. Less efficient resource allocation is believed to result from raising the additional taxation revenue necessary to fund government programmes.

4. Aggressive US subsidization of production and exports of farm prod­ucts was followed by that of other exporting countries, mainly the European Community and Canada, which resulted in competitive sub­sidization and price discrimination.

5. Levying taxes or borrowing, governments pay for the goods they buy and for the transfer payments they make.

6. In a mixed economy, the government is known to control a consider­able share of output through taxation, transfer payments, and such services as defense and the police force.

7. Unemployment benefit systems are said to vary considerably from country to country.

8. The purpose of that book is to show that there are limitations in the economy that no person and no policy can overcome.

9. Both those who provide capital for a new business and those who run the business are known to bear the risk whereas workers of such busi­nesses are not expected to bear any risk.

10. Social security programmes may comprise retirement pensions, inval­idity benefits, child benefits paid for every child in a family, housing benefits for low income households, etc.

Exercise 11: Translate the sentences into English:

1. Доля налогов в цене товара не может зависеть от покупательной способности населения.

2. Считается, что дополнительный доход от государства является отрицательным стимулом для поисков работы с более высокой заработной платой.

3. Незначительная доля государственных расходов Японии обусловливается, как известно, чрезвычайно низким уровнем расходов на национальную оборону.

4. Общественные расходы – это, как известно, те расходы, которые финансируются из налогообложения и государственных заимствований.

5. Большой государственный сектор, как полагают, делает экономику неэффективной, снижая количество товаров и услуг, которое может быть произведено и в конечном итоге распределено потребителям.

6. В Великобритании взносы в фонды социального страхования составляют почти треть от общей суммы, которая направляется на социальные расходы.

Text 2: Read and translate the following text:

Economists know state to affect for whom goods are produced mainly through its taxes and transfers, which take income away from some people and give it to others.

Besides these direct effects, the state also affects the allocation of resourc­es indirectly through taxes (and subsidies which economists think to be neg­ative taxes).

When state levies a tax on a good, such as cigarettes, we believe it to re­duce the quantity of that good produced; whereas when it subsidizes a good, such as milk, the quantity of that good produced increases as a result.

Economists consider the power to tax to be the power to affect the alloca­tion of the economy's resources, or to distribute what is produced. Through taxing cigarettes the state can reduce the amount of cigarettes smoked so that health of the nation improved.

Taxing income earned from work, the state affects the amount of time people want to work.

Exercise 12: Find definitions for the following terms:

direct tax, indirect tax, tax burden, tax revenue, income tax, corporation tax, value added tax, sales tax, excise duty, tax rate, taxable income, public goods

1. A form of indirect tax which is included in the selling price of a prod­uct and which is eventually paid by the consumer.

2. An indirect tax which is based on the difference between the value of the output over the value of the input used to produce it.

3. The percentage rate at which a tax is levied on income or expendi­ture.

1. The money raised by government through imposing taxes.

4. A tax levied by the government on goods and services in order to raise revenue, such as value added tax and excise duty.

5. Goods and services provided by the state for all or most of the popula­tion such as education, health, housing, etc.

6. A tax levied by the government on the income or property of house­holds or businesses.

7. A direct tax levied by the government on the income (wages, rent, div­idends) received by households.

2. The amount of an individual's income on which a tax is levied.

10. The total amount of taxation paid by the population of a country in the form of income tax, corporation tax, value added tax, etc.

11. A direct tax levied by the government on the profits of businesses.

12. An indirect tax levied by the government on certain goods, typically tobacco, oil, and alcoholic drink.

Text 3: Read and translate the text