C Tax Evasion 10 example essay topic

Unite 3 - Basic Economic Terms 1. Study the following vocabulary before reading. aggregate demand chargeable taxe collect taxe direct taxeeconometricequilibriuexact a taexternalitiefactors of productio fixed tag ross national product (GNP) impose a ta income tain direct ta macroeconomic microeconomic pay taxe progressive ta special tasurta taxable objectaxpaye tax declaratiotax law turnover treading 2. Read the sentences "Basic Economic Terms". 1.

Factors of production (or inputs) are resources used by firms in their production process, namely land and the natural resources in it, labor, capital, and (in recent definitions) information. 2. Externalities (or spillovers) are costs imposed on others without their receiving compensation, or benefits received by others without their paying the proper costs. 3. Microeconomics concerns the economic factors affecting individual consumers and companies. 4.

Equilibrium is a state of balance, for example, when supply meets demand. 5. Econometrics is the application of mathematical and statistical models to economic theories and problems. 6.

Macroeconomics is the study and analysis of the economy as a whole. 7. Aggregate demand is the total amount spent in a country by consumers, companies, and the government. 8. Gross national product (GNP) is the total wealth earned or created in a country in a year. 9.

Endogenous means coming from or controlled from within, e.g. variables that are totally under the control of a company, a government, etc. 10. Exogenous means coming from or controlled from or without; uncontrollable variables. Language development 3.

Which twelve terms in the box are defined in the sentences below aggregate supply balance of payments capital cost of livineconomi economical economizeconomfiscal free enterprise fluctuate inflation input marke monetarism protectionism scarcitstandard of living 1... Adjective meaning of or relating to an economy or economics. 2... Adjective meaning related to public (i.e. government) finances (taxation, expenditure, etc.

). 3... Adjective meaning using a minimum of resources; or cheap. 4...

A rise in the general level of prices, and an increase in the money supply. 5... A shortage of sometimes; insufficient supply to meet demand. 6...

The accumulated stock of goods used for the production of further goods (and the money required to purchase them) 7... A measure of the amount of money that has to be paid for essentials such as food, accommodation, heating, clothing, etc. 8... A measure of the amount of disposable income that people have to spend on both necessities and luxuries. 9...

The difference between what a country pays for its imports and receives for its exports. 10... The practice of restricting imports in order to increase the sales of domestic products. 11... To change constantly, to show irregular variation. 12...

To save money, to reduce an amount normally used. 4. Here are the words and phrases you need to talk about trends using graphs. Make sure you can translate these "Describing Graphs" into your own language. UP - verbs go u take off shoot up soa jump increase ris gro improve rocket UP - nouns an increase a rise growth an improvement an upturn a surge an upsurge an upward trend DOWN - verbs go / come down fal fall off dro slump decline decrease sli plummet shrink DOWN - nouns a fal decrease a decline a drop a downturn a downward trend NO CHANGE - verbs remain stable level off stay at same level remain constant stagnate stabilize AT THE TOP - verbs reach a peak pea top out AT THE BOTTOM - verbs reach a low point bottom out recover DEGREES OF CHANGE Adjectives: dramatic, considerable, sharp, significant, substantial, moderate slightly; Adverbs: dramatically, considerably, sharply, significantly, substantially moderately, slightly; SPEED OF CHANGE abrupt sudden rapid quick steady gradual slow PREPOSITIONS a rise from 1 m to 2 to increase by 50% to fall by 30 an increase of 7.5 per cent over last year 5. What are "The Three Sectors of the Economy" Match the following questions and answers; What do we mean by the primary sector of the economy What happens to the food extracted in the primary So what's the secondary sector How do people in the secondary sector make things And the tertiary sector Why is the number of people working in the primary sector regularly declining And why is the secondary sector getting smaller in many of these countries But not tertiary services Because agricultural methods are always becoming more efficient.

Western Europe and the USA already produce too much food with only 3% of the population working on the land. Because much manufacturing can be carried out more cheaply in low-wage economies, for example in East and South-East Asian countries like China, Hong Kong, Taiwan, South Korea, Malaya and Vietnam. Agriculture and the extraction of raw materials from the earth or the sea. It includes the commercial services that enable industry to produce and distribute goods to their final consumes (trade, banking, warehousing, transport, communications, and so on), as well as activities like education, heals care and tourism.

It involves the transformation of raw materials into finished products. Not if the activities require a lot of training, education, know-how and technology. Only some of them. Manufacturing companies also employ finance and marketing managers, administrative staff, maintenance staff, and so on. Some of it, such as fresh fruit or fish, is consumed almost immediately after extraction; the rest serves as raw material for the secondary sector. 1 2 3 4 5 6 7 8 Grammar 6.

Add verbs in the correct form to the following sentences. Raw materials are... from the ground and then either... , or... into finished goods. Before finished goods are sold they often have to be... , etc. 7.

Match up the phrasal verbs on the left with the verbs that have a similar meaning on the right: 1. bottom ou a. accept ( job, responsibility, etc.) 2. bring out. continue 3. carry oc. decline 4. carry oud. dismiss 5. close down. establish 6. count o f. have confidence in 7. cut back og. increase 8. fall of h. introduce something new 9. lay of i. postpone, delay 10. level of j. reach the lowest point 11. look through. read quickly 12. look fo l. reduce 13. mark um. reduce in size 14. pull out o n. shut 15. put of o. stabilize 16. scale down. try to find 17. set uq. do or undertake 18. take or. withdraw from 1 - 2 - 3 - 4 - 5 - 6 - 7 - 8 - 9 - 10 - 11- 12- 13- 14- 15- 16- 17- 18- 8. Use each of the phrasal verbs above once to complete the text. You may need to use the past tense, the past participle or the present continuous form. After three years of rapid grown, sales began to (1)... Then, with the recession, they (2)... dramatically. We had to (3)... the factory in Ireland, and (4)... sixty people.

That left a lot of machine workers (5)... a job in one small town. They (6)... the newspapers every day, but there weren't many job vacancies. The unemployed had to (7)... any kind of casual work they could find. We also had to (8)... staff in the London office, and reconsider the whole British operation that we'd (9)... only five years before. Some of the American managers wanted to (10)... the British market entirely, and to (11)... our whole European business.

Instead we have (12)... a restructuring, and (13)... all our plans for expansion, and for (14)... new products. We " re trying to (15)... as best we can. We might even have to (16)... our prices a little, hoping we can (17)... our customers' brand loyalty. At least there are some signs that the recession has (18)... 9. Use the correct form of these verbs in the following sentences: avoid be liable deduct evade levy lower pay raise If you inherit a lot of money, you... for capital transfer tax.

In some countries, employers have to... tax from your pay and... it direct to the tax authorities, so employees have no possibility of... income tax. Some people hire expensive accountants to tell them how to... taxes - legally, of course! The government always tries to... taxes in the year before elections. The government has a huge deficit and is going to... either the rate of VAT or income tax.

The government... special taxes on petrol, alcohol and tobacco. Listening & speaking 10. Listen to the text "Inflation": Inflation is a rise in the general level of prices. It is caused by an excess of demand over supply, and is related to an increase in the money supply. Single-digit inflation is usually described by economists as a moderate inflation. Double or triple-digit inflation, which some countries have survived for quite long periods, is known as galloping inflation.

Inflation of four or more digits, as in Germany in the early 1920's, and Argentina in the early 1980's, is known as hyperinflation. Prices in general tend to remain at the same anticipated level unless there are demand-pull or cost-push shocks. If aggregate demand exceeds what a country can produce at full employment, prices will rise (including wages, the price of labor): this is demand-pull inflation. But, for the last fifty years, costs have pushed up prices and wages, even in recessions and periods of high unemployment: this is cost-push inflation. Cost-push inflation is caused, for example, when unions demand wages that employers cannot afford or when oil producers are able to raise their prices.

The opposite of inflation, when prices fall (generally for short periods), is deflation. Government policies can be inflationary (often by accident), disinflationary or reflationary. Disinflationary policies might be aimed at slowing down price inflation or at reducing imports, they involve reducing demand by raising taxation and / or cutting government spending. Reflationary policies, on the contrary, involve revitalizing a sluggish economy by increasing consumer demand, either by cutting taxes or raising benefits, or relaxing monetary and credit restrictions.

Inflation is measured by the retail price index (RPI) in Britain and the consumer price index (CPI) in the US. These measure the cost of a 'basket' of goods and services, including food, clothing, housing, fuel, transport and medical care. The individual items in price indices are weighted, meaning that allowance is made for their relative importance in people's spending. Unless inflation is both balanced (affecting all prices and costs equally) and anticipated, it distorts relative prices, tax rates and real interest rates. Unexpected inflation tends to benefit people with fixed nominal interest rate debts, and so disadvantage creditors and people with fixed nominal interest rate assets or non-index-linked pensions. 11.

Make up the discussion with your partner. Use words and questions given below: assetsconsumerdebtsdeflation excess employment hyperinflation interest producersrestrictionsspendinsupply unemployment weighted 1. What is the inflation rate in your country at present 2. Can you give current examples of double and triple-digit inflation 3. What is your government's policy at the moment Does it seem to be more concerned with price stability or with reducing unemployment Revision box 12. Use sentences 1 to 10 to make up a short text about "Government Spending".

Complete each sentence, by taking a middle part from the second box and from the third box: If tax revenues are higher If, on the contrary, government expenditures exceed A structural surplus or deficit A cyclical surplus or deficit, on the other hand, Budget deficits have to be funded by the sale of government bonds, The higher the amount of government bonds sold in a country, Neo - classical economists On the other hand, if the money supply is expanded, The is partly due to the acceleration principle, But of course everybody knows a. called gilt - edged securities in Britain. call this "crowding out", c. increased government spending d. is result of government policies such as e. is the result of the business cycle: f. money collected by taxes, g. than government spending, h. that increasing the money supply i. the less capital is available j. which is that increased demand for consumer goods k. a country has a budget deficit. l. a country has a budget surplus. m. almost inevitably leads to inflation. n. and Treasury bonds in the USA. o. and use it as an argument against Keynesian fiscal policies. p. can raise output and investment, at least in the short term. q. changes in spending or revenues caused by a boom or a slump. r. for private sector investment. 's. produces a greater increased demand for capital goods. t. tax rates, welfare and defense spending, and so on. Beginning 10 Middle Ending 13. Match the following terms with the definitions below, and then use them to label the situations classical unemployment seasonal unemployment cyclical unemployment structural unemployment frictional unemployment voluntary unemployment... exists in trades or occupations where work fluctuates according to the time of year... exists when people choose not to work, often because they cannot find jobs that pay enough money (e.g. more than social security benefits)... is temporary unemployment that arises when people voluntarily leave a job to look for another one... is the loss of jobs caused when wages are too high... occurs during recessions, when the overall demand for labor declines... occurs when the skills of available workers do not match the jobs vacant. I lost my job withIt's crazy - the only 4,000 other people jobs available round when they closed here pay less than I get down the coal mine. from Social Security. 14. I work with a travelin I'm a skilled electrician, circus in the summer but there's such a slump but it's just closed foin the construction the winter industry right now tha I'm out of work.

2 5. The union went left my job last week strike for 8% pa after an argument with rise. They got it, bu my boss. I'm sure I can the company laid of find something better. ten of us. 3 6.14. Choose the correct words to complete each sentence: The tax on wages and salaries (and business profits in the US) is called...

In Britain the tax on business profits is called corporation tax. a. direct tab. income ta c. wealth tax 2. A tax that is levied at a higher rate on higher incomes is called a... tax. a. progressive b. regressive c. value-added 3. Property taxes, sales taxes, customs duties on imports, and excise duties on tobacco, alcoholic drinks, petrol, etc. are... taxes. a. direc b. in direc c. value-added 4. Most sales taxes are slightly... because poorer people need to spend a larger proportion of their income on consumption than the rich. a. progressive b. regressive. repressive 5. A sales tax collected at each stage of production, excluding the already-taxed costs from previous stages, is called aa. sales ta b. value-added tax c. added-value tax 6.

Profits made from the sale of assets are liable to a... tax. a. capital gain b. capital transfer c. wealth Gifts and inheritances are usually liable to... tax. a. capital gain b. capital transfer c. wealth Reducing the amount of tax you pay to a legal minimum is called... a. fiscal policy. tax avoidance c. tax evasion Making false declarations is called... and is obviously illegal. a. creative accounting b. tax avoidance c. tax evasion 10. Bringing forward capital expenditure (on new factories, machines, and so on) so that at the end of the year all the profits have been used up is known as making aa. mistake b. tax have. tax loss 11. Multinational companies often set up their head offices in low-tax countries such as Liechtenstein, Monaco, the Cayman Islands, and the Bahamas, known asa. tax have nb. tax heavens c. tax shelters 12. Criminal multinationals such as the Mafia tend to pass money through a series of companies in very complicated transactions in order to disguise its origin from tax inspectors and the police; this is known as... money. a. clean in b. launder in c. washin 15. Translate the text into English: . -.

16. All the words below can be combined with tax or taxation in a two - word partnership (e.g. tax accounting, progressive taxation). Add tax and / or taxation before or after the following words: ... accounting... 14... inspector... allowance... 15... loophole... authority... 16... loss... avoidance...

17... payer... consultant... 18... progressive... corporation... 19... rates... deductible... 20... rebate... direct... 21... regressive... evasion... 22... retune... free...

23... sales... haven... 24... shelter... income... 25... withholding... indirect... 26... year...