Optional HW (for extra credit): A short talk (100 words: intro, body, conclusion + phrases from pp 53-54) on one of the following topics: –a football

Optional HW (for extra credit):

A short talk

(100 words: intro, body, conclusion + phrases from pp 53-54) on one of the following topics:

– a football / hockey / basketball... match– your hobby (dancing, chess, volunteering...)– why you are studying economics/business– is Kovač going to pull it off...– BODY LANGUAGE

HW check: • Submit notes on Manufacturing and services• RB, p 18 I central / local government

unlimited wants

basic economic problem

free market / capitalist / planned / mixed economy

market mechanism

level playing field

fair competition

public / private sector

income distribution

supply and demand

resource allocation

• RB, p 18 IIallocate resources

pass laws

provide (essential) products and services

ensure a level playing field

plan the production process

organize / co-ordinate the production process

distribute goods and services

supply (some) public goods

make production decisions

• III market mechanism, automatic allocation, competition, public goods, allocation

→ HANDOUT: Types of economies - review

MK, p 109-110: The role of government(Reading & questions)

• Comprehension• Discussion• Whose opinion on the role of government is

closer to your personal views?The Friedmans or J.K. Galbraith

HW: Make notes comparing the two views(handout with prompts or create your own)

• Vocabulary, p 111• Listening

Government intervention (Listening, MK, p 111)

• Listen and fill in the gaps:

The second effect is whether we think unfettered 1____ ________ alone can ensure the long term 2________ allocation of resources and long-term 3 ________ _______. Markets are very important, I’m not denying ... Often economists talk about notions of 4 _______ _____ or the fact that markets are not working properly.

free markets optimal

economic growth

market failure

• What reasons does Michael Kitson give for government spending on education and health?

• Why don’t firms invest in early-stage technologies?

• How far do you agree with Kitson about these various forms of spending?

The Public Sector→ RB, p 20

→ RB, p 21, exercise II & IV

HW, exercise III

• Describe public goods using the following nouns/noun phrases:public sector consumption amount all individuals

• Describe merit goods using the following phrases:not available provided by the state standard of living

V Explain the meaning of the following saying (R p 21):“The market has a keen ear for private wants and a

deaf ear for public needs.”

• All government spending has to be paid for by....

Taxation

Time to take a break!• http://www.youtube.com/watch?v=YtksJEj2Keg

TAXATION, MK, U 22

Tax, n. (U C) Money that you have to pay to the government according to your income, property, goods etc.

Tax, v. (T) to make a person or organization pay tax.

E.g. The govt. taxed the shareholders on the dividends they receive.

The shareholders get/are taxed on the dividends.

(Longman Business English Dictionary)

CHOOSE THE RIGHT WORD1. The main purpose of taxation is to

raise / rise revenue for government spending .

2. Taxes also reduce / provide inequality through redistribition.

3. Taxes are decreased / levied for the purpose of repricing.

4. A consequential effect of taxation is representation (rulers tax / levy citizens, and citizens demand accountability from their rulers).

CHOOSE THE RIGHT WORD1. The main purpose of taxation is to

raise / rise REVENUE for government spending .

2. Taxes also reduce / provide inequality through REDISTRIBITION.

3. Taxes are decreased / levied for the purpose of REPRICING.

4. A consequential effect of taxation is REPRESENTATION (rulers tax / levy citizens, and citizens demand accountability from their rulers).

The Four “R”sFour main purposes of taxation

Revenue, ____________, Repricing & Representation

1. Revenue: taxes r______ money to spend on public goods and g___________ functions (e.g. market regulation or legal systems).

2. R____________. Transferring wealth from the richer sections of society to poorer sections.

3. Repricing. Taxes are l_________ to address externalities: tobacco is taxed, for example, to discourage smoking.

4. Representation. “No taxation w_________ representation!" =

rulers tax citizens & citizens demand accountability from rulers

The Four “R”sFour main purposes of taxation

Revenue, Redistribution, Repricing & Representation

1. Revenue: taxes raise money to spend on public goods and government functions (e.g. market regulation or legal systems).

2. Redistribution. Transferring wealth from the richer sections of society to poorer sections.

3. Repricing. Taxes are levied to address externalities: tobacco is taxed, for example, to discourage smoking.

4. Representation. “No taxation without representation!“ =

rulers tax citizens & citizens demand accountability from rulers

COLLOCATIONSWho does what?levy a tax / evade a tax / collect a tax / impose a tax / avoida tax / fill in a tax return / put sb. in a tax bracket / file a taxreturn / be exempt from tax / exploit a loophole / increase atax / provide a tax relief/use a tax break / be liable to pay a tax GOVERNMENT

TAXPAYER (TAX AUTHORITIES)

Work in pairs to write min. 4 sentences with collocations.→ MK, p 112 – Vocabulary

COLLOCATIONSWho does what?levy a tax / evade a tax / collect a tax / impose a tax / avoida tax / fill in a tax return / put sb. in a tax bracket / file a taxreturn / be exempt from tax / exploit a loophole / increase atax / provide a tax relief/use a tax break / be liable to pay a tax

HW: write min. 8 sentences with collocations.→ MK, p 112 – Vocabulary

TAXPAYER GOVERNMENT (TAX AUTHORITIES)

evade a tax, avoid a tax, fill in a tax return, file a tax return, be exampt from tax, exploit a loophole, use a tax break, be liable to pay a tax

levy a tax, collect a tax, impose a tax, put somebody in a tax bracket, increase a tax, provide a tax relief

Vocabulary, MK p 112

1 income tax Note: flat rate of income tax

2 direct tax (the same for everybody)

3 progressive tax – the more you earn the more

4 indirect tax tax you pay5 value-added tax Pls. Compare flat rate tax

6 capital gains tax with progressive tax

7 inheritance tax

8 wealth tax

9 tax evasion 11 tax havens

10 tax avoidance 12 a loophole

Taxation: Warren Buffet on taxation system in the USA

• http://www.youtube.com/watch?v=oi6BQLM4aqo&feature=related

• Watch and answer the question:

Which types of taxes are mentioned in the programme?• HANDOUT - Listen and fill in:• LOOK UP THE FOLLOWING TERMS:

– Hedge fund– Payroll tax– To revamp– To reap– preferential

Taxation

• http://www.youtube.com/watch?v=oi6BQLM4aqo&feature=related

1) wealthy 9) shelters

2) percentage 10) fund

3) rate 11) hedge

4) inustice 12) preferential

5) than 13) higher

6) payroll 14) income

7) average 15) gains

8) paid 16) in

HW:• Structured notes comparing Galbraith and the

Friedmans view of the role of the state• Write a minimum of 8 sentences using

collocations with the word “tax” (from slide 17)

• Watch the programme with W. Buffet again and get ready to make a comment (minimum 5 sentences)

• What’s your opinion about the taxation system in Croatia?