1. THE ROLE OF GOVERNMENT Unnecessary laws or enough laws?

2. GOVERNMENT ROLE a) essential - the economic infrastructure (public transport, telecommunications…) - services (education, health care, social security...) left – wing views

3. b) restricted - defence, the police, the justice system - too much regulation bad for business (inefficiency) - right wing views

4. AREAS OF RESPONSIBILITY 1.Maintenance of a low level of unemployment 2.Price stability (low levels of inflation) 3.High economic growth (GDP) 4.Balance on foreign trade (more exports than imports)

5. Gross Domestic Product GDP goods & services produced within a country’s borders GDP = C + G + I + NX C = all private consumption/consumer spending G = government spending I = investment / all the country’s business spending on capital NX = total net exports (total exports minus total imports)

6. More jobs - more money Lower inflation – cheaper production More exports – more money Higher growth – better standard of living Social welfare – health, comfort happiness

7. RB: p: 19 1.What areas does Galbraith describe as responsibilities of the state? 2.What does G. say about the people who criticise government services? 3.According to G. the market system is not sufficient to guarantee scientific research. Why?

8. http://www.ted.com/talks/lang/eng/david_cameron.html The leader of Britain's Conservative Party says we're entering a new era….. Summarize his words.

9. TAXATION (MacKenzie, page 112)

10. THE FUTURE OF TAXATION

11. http://www.investopedia.com/video/play/tax-avoidance-vs-tax-evasion#axzz1cI2dsZXm Explain the difference between tax avoidance and tax evasion. _________________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________

12. GROUP ASSIGNMENT 1. MK: P.113 task 4 and 5 a) Write a summary in defence of taxation b) Write a summary against taxation 2. http://www.newyorker.com/talk/financial/2011/07/11/110711ta_talk_surowiecki#ixzz1b2zp85LZhttp://www.newyorker.com/talk/financial/2011/07/11/110711ta_talk_surowiecki#ixzz1b2zp85LZ Read the text “Dodger Mania” and fill in the blanks: Greece has had to adopt more stringent _____________ plans in order to secure a ___________ from the EU. Greece got in this mess due to _______________public _____________. Tax ________________is the national pastime. The “shadow ________________” is larger in Greece than in almost any other European country. ______________ are devoting plenty of time to hiding their income. To have a ___________ tax system you have to enforce the law. Greek tax ______________were notoriously easy to bribe. Enforcement of the tax laws loosened in the months leading up to __________________. Even when the system tracked down evaders, the tax courts took seven to ten years to resolve a case. Greek citizens are not compliant ________________. Their tax system was riddled with loopholes and exemptions: famous people were given ______________ rates, while shipping tycoons paid no ______________ tax at all and some other professions were legally allowed to ______________ their income. A hefty chunk of the population _______________ on its taxes. If tax ____________ is so common, people trust the system less, which makes them less willing to pay taxes. Because so many don’t _______________, the government has had to raise taxes on those who do. Now the Greek government is rationalizing its tax - _________________ system. It has simplified taxes and done away with some of the ________________. Tax reform will be a ___________order for Greece and the future of the EU may depend on it.

13. MAKE A LIST OF THE RED MARKED EXPRESSIONS FROM THE TEXT AND MAKE A SUMMARY ON THE TAX-COLLECTION SYSTEM IN CROATIA. 1.__________________________________________________________ 2.__________________________________________________________ 3.__________________________________________________________ 4.__________________________________________________________ 5.__________________________________________________________ 6.__________________________________________________________ 7.__________________________________________________________ 8.__________________________________________________________ 9.__________________________________________________________ 10.__________________________________________________________ 11.__________________________________________________________ 12.__________________________________________________________ 13.__________________________________________________________ 14.__________________________________________________________ 15.__________________________________________________________ 16.___________________________________________________________ 17.___________________________________________________________ 18.___________________________________________________________ 19.___________________________________________________________ 20.___________________________________________________________ 21.___________________________________________________________