Unit 22 - Government and Taxation

Question 1

tax paid on the profits made from selling something you own

Answer 1

capital gains tax

Question 2

tax paid on any property, money and other assets given to someone

Answer 2

capital transfer tax

Question 3

the use of children to do work that should be done by adults

Answer 3

child labo(u)r

Question 4

a tax on wages and salaries or on company profits

Answer 4

direct tax

Question 5

positive or negative consequences of economic activities experienced by other people

Answer 5

externalities

Question 6

a government’s plan for deciding how much money to borrow and to collect in taxes, and how best to spend it

Answer 6

fiscal policy

Question 7

a tax that is paid at a single rate at all levels of income

Answer 7

flat tax

Question 8

government actions to influence the way fincancial markets or particular industries operate

Answer 8

government intervention

Question 9

how a nation’s total GDP is distributed amongst its population

Answer 9

income distribution

Question 10

the tax people pay on their wages and salaries

Answer 10

income tax

Question 11

a tax paid on property, sales transactions, imports

Answer 11

indirect tax

Question 12

a tax paid on money or property you have received from someone who has died

Answer 12

inheritance tax

Question 13

agreement between management and the employees of a company about salary working conditions etc

Answer 13

labo(u)r contract

Question 14

a small mistake or exception in a tax law which allows you to avoid paying sth.

Answer 14

loophole

Question 15

the forces that decide price levels in an economy whose activities are not influenced or limited by government

Answer 15

market forces

Question 16

the smallest amount of money that an employer is legally allowed to pay someone who works for them

Answer 16

minimum wage

Question 17

the crime of moving money that has obtained illegally through banks and other businesses to make it seem as if the money has been obtained legally

Answer 17

money laundering

Question 18

pension that is paid by the state to people who stopped working because they’ve reached a particular age

Answer 18

old age pension

Question 19

a tax leveled at a higher rate on higher incomes

Answer 19

progressive tax

Question 20

situation in which rich people are taxed more and poor people are taxed less as a percentage of their incomes

Answer 20

redistributive taxation

Question 21

a tax in which poor people pay a higher percentage of their income than rich people

Answer 21

regressive tax

Question 22

money paid by the government to someone who cannot work because of illness

Answer 22

sickness benefit

Question 23

a system of payments made by the government to people who are ill, poor or who have no job

Answer 23

social security

Question 24

reducing the amount of tax you pay to a legal minimum

Answer 24

tax avoidance

Question 25

illegal methods used by people or companies to reduce the tax they pay, or a particular situation where this happens

Answer 25

tax evasion

Question 26

countries where taxes are low, where multinational companies often set up their head offices

Answer 26

tax haven

Question 27

to distribute according to a plan

Answer 27

to allocate

Question 28

to organize something to make a profit

Answer 28

to commercialize

Question 29

in the UK, money that the government pays to unemployed people who are looking for a job

Answer 29

unemployment benefit

Question 30

a tax that is paid at each stage in the production of goods or services, and by the final customer.

Answer 30

value-added tax (VAT)

Question 31

a tax on personal property and financial assets above a particular level

Answer 31

wealth tax