1. Example notes: Decline of manufacturing and employment in post-industrial countries (RB, p 23) EMPLOYMENT PER SECTOR OVER TIME(pg. 1) 200 years ago - mostly agriculture ↓ (Advanced) - depend on secondary industrialised countries sector for employment ↓ Post-industrial countries - mostly tertiary sector (manufacturing → developing countries) DECLINE OF MANUFACTURING≠ UNEMPLOYMENT(pg. 2,3) Need for physical objects → main activity: manufacturing Needs satisfied → main activities: design, art, marketing SERVICES – THE LATER STAGE OF EMPLOYMENT(pg. 3, 4) - design, art, entertainment, amusement – new jobs e.g. U.S.A., London, Paris, NY

2. Manufacturing and services I EMPLOYMENT BY SECTORS OVER TIME (pg 1) 200 years agovs.Today ↓ ↓ agricultureservice industries → growth II NO MORE DEPENDENCE ON HEAVY INDUSTRY (pgs 2-4) - physical needs = satisfied → newest concern: DESIGN - new jobs in art, entertainment, music, amusement (e.g. New York, Paris, London) III CONCLUSION (pg 5) - needs and consumption = constant change jobs in NEW sectors and industries = SOCIAL DEVELOPMENTS

3. Homework loss of manufacturing ≠ unemployment –E.g. UK design & entertainment → new jobs  important parts of economics = fact

4. The Role of Government Free to Choose by Milton and Rose Friedman Reading  MK, p 109-110 Answer the comprehension questions List examples they provide of govt. legislation: How far do you agree with the Friedmans?

5. The Role of the Government, cont. → RB, p 36 I Read and say: What areas does Galbraith describe as responsibilities of the state? II Answer the questions: What does G. say about those who criticise govt. services? Why is the market system not sufficient to guarantee scientific research? How would you characterize Galbraith’s politics? Read the definition of the welfare state. What is the term that Galbraith uses for the same concept? HW: Compare Galbraith’s (RB, p 36) and the Friedmans’ (MK, p 110) points of view on the role of government in NOTE FORM. Hand in: Mon, 17 Nov, 2014

6. All government spending has to be paid for by.... taxes. Taxation

7. 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)

8. CHOOSE THE RIGHT WORD 1.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).

9. CHOOSE THE RIGHT WORD 1.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).

10. The Four “R”s Four 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).evenue 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.Repricing 4. Representation. “No taxation w_________ representation!"Representation = rulers tax citizens & citizens demand accountability from rulers

11. The Four “R”s Four 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).evenue 2. Redistribution. Transferring wealth from the richer sections of society to poorer sections.Redistribution 3. Repricing. Taxes are levied to address externalities: tobacco is taxed, for example, to discourage smoking.Repricing 4. Representation. “No taxation without representation!“ = rulers tax citizens & citizens demand accountability from rulersRepresentation

12. → MK, p 112 – Vocabulary

13. Vocabulary, MK p 112 1 income taxNote: flat rate of income tax 2 direct tax(the same for everybody) 3 progressive tax – the more you earn the more 4 indirect taxtax you pay 5 value-added tax Pls. Compare flat rate tax 6 capital gains tax with progressive tax 7 inheritance tax 8 wealth tax 9 tax evasion11 tax havens 10 tax avoidance12 a loophole → MK, p 113

14. TAXATION, MK p 113 In favour1367101213 Against2458911 Which of the statements you find the most convincing and why?  RB, p 38 II Scan the text and match the headings with the paragraphs. HW, read Dodger Mania and do tasks on pp 40-41 (questions, vocabulary and mind map)