Government Income and Expenditure (%)

1. Which two items of taxation bring in about half of the government's revenue?

2. Which are the three largest items of government expenditure?

3. What could be some of the effects of increasing the rate for corporation tax?

4. What would be the effect of companies making more profits?

5. How do you expect the declining school population to affect future Chancellors' budgets?

6. What effect on national spending patterns would you expect from lower death rates?

7. How do you account for the deficit shown on the income side of the equation?

Section D. Opposites and synonyms

For each of the following words you are asked to provide a synonym (a word with the same or similar meaning) and another word which is opposite in meaning.

word	Synonym	opposite
deficit (noun)	lack	surplus
equitable (adj.)
mobile (adj.)
public (adj.)
adequately (adverb)
fluctuating (adj.)
confirm (verb)
reveal (verb)
depreciation (noun)
collectively (adverb)
gather (verb)
random (adj.)
popular (adj.)
distinguish (verb)
declining (adj.)
purposeful (adj.)
decisively (adverb)
co-operative (adj.)
rashly (adverb)
autocratically (adverb)

Section E. Missing words

Your task: A number of words have been omitted from the following passage. You are asked to find appropriate words to complete the text.

In the western democracies emphasis is laid on the freedom of the individual, both as a consumer and the owner of resources. As a …………….. he expresses his choice of goods through the price he is willing to pay for them. As the owner of a factor of production (his own labour), he seeks to obtain as large a …………….. as possible. If he wants more of the good than is being…………. at the current price, he will 'bid up' the price. As a result, resources are attracted to that ……….. industry and supply expands. On the other hand, if consumers do not want a particular good or service, its price falls, make a loss, and resources leave the industry. There is no …………. of labour; people are free to work wherever they choose. The role of government is simply to correct any ……………. which might develop in the system. However, western governments do not settle for a passive role. Rather they take it upon themselves to redistribute …………… income, succour the sick and the underprivileged, generate national wealth and provide for national defence. To achieve these ends they are …………… to raise taxes from the populace and in doing this they are almost bound to become………….. .

Section F. Summarising

Give the following passage an appropriate title and summarise it in Russian in about 150 words.

The world faces an energy crisis in the not-too-distant future. For the time being there are plentiful supplies of oil, but this situation will not last. Oil supplies are finite, and what happens when the world's reserves are exhausted? In Britain we are comparatively fortunate. We have North Sea oil and gas, and they will give us self-sufficiency for another couple of decades. We also have substantial reserves of coal. According to some estimates our coal reserves could last for another sixty years. That should give us a breathing-space at least until alternative forms of energy are developed. There is a world-wide search for new sources of energy.

The government of Saudi Arabia has been making encouraging progress in the development of solar energy. Plants they have built in the desert are turning the rays of the sun into what can only be described as permanent sources of energy. So successful have the experiments been that when they eventually run out of oil – as run out of oil they must – they will be switching to an even more durable form of energy.

Not only has the government of Saudi Arabia been working hard to develop solar energy. They have also been working hard to convert the desert to rich agricultural land. Impossible? By no means! Beneath the Arabian Desert lies an enormous water basin. The problem is to bring up those water supplies from the bowels of the earth. How to do it? Sink wells deep into the earth, seeking water this time instead of oil. As the water is drawn from the earth it is sprayed over the crops of wheat and vegetables and of course they flourish in such an environment.

Perhaps it is unrealistic to expect all governments to play such a positive role in the development of their economy and the long term wellbeing of their people, but they do set the standards by which other governments can be judged.

Section G. Cause and effect

Listed below are a number of companies. These are followed by brief details of possible government actions. Consider in each case whether the government's action would be beneficial or otherwise to the company in question.

1. The company is an insurance company specialising in motor insurance. Possible government actions:

   1. A relaxation of the drinking and driving laws.

   2. The introduction of a lower speed limit on motorways.

   3. A substantial reduction in National Health Service expenditure.

2. The company manufactures cigarettes.

   1. An extensive television publicity campaign encouraging young people to stop smoking.

   2. A slight increase in the tax on cigarettes.

   3. A substantial increase in the tax on beer.

3. The company operates coach tours to the continent.

   1. A substantial increase in the tax on petrol.

   2. A new law limiting the number of passengers who can be carried in coaches.

   3. A lowering of the retirement age to 55.

4. The company is in the business of life assurance.

   1. A substantial increase in pay for nurses.

   2. A substantial increase in the tax on cigarettes.

   3. The abolition of prescription charges for all medicines.

Section H. Meanings

Explain the meanings of the words and phrases which have been highlighted.

1. Since goods and services in the economy as a whole are limited, the government has to cut its coat according to the cloth.

2. The arguments against a political union (or federation of states) in the European Community centre on the loss of sovereignty of the British Parliament.

3. One of the most serious problems which any government has to face is a downturn in the world economy.

4. One way of judging the effectiveness of a particular government is to note the success it is having in stimulating the growth of the national income.

5. No government can afford to disregard the interests of its people caught in the poverty trap*.

6. If a government is able to lower interest rates, businesses will no doubt respond by undertaking projects which were hitherto unattractive.

7. Where an economy is adapting to changing conditions, there will always be some persons unemployed as they switch jobs or as seasonal or casual work comes to an end.

8. In order to protect its exporters a government will do its best to stabilize the exchange rates.

Section I. Write a letter

The following advertisement appeared in the Times newspaper yesterday. Write a letter applying for the job.