Answer Key
Economic issues - the business cycle, unemployment, taxation – Practice 1
Choose the correct answer:
- “I get frustrated at work when you have to get permission to spend anything over 50 CZK. I don't like [red tape] and bureaucracy”.
- Making false declarations is called [tax evasion] and is obviously illegal.
- If you inherit a lot of money, you [are liable] for capital transfer tax.
- As temperatures rise, the [demand] for air-conditioning units increases.
- I work in a bank as a risk manager, while my husband is a hairdresser. This means that we are both working in the [tertiary sector]
- “I work with a traveling circus in the summer, but it's just closed for the winter.” This is an example of: [seasonal unemployment]
- Multinational companies often set up their head offices in low-tax countries such as Liechtenstein, Monaco, the Cayman Islands, and the Bahamas, known as [tax havens]
- The [bust] came in 1999 when the Russian economy crashed and the rouble devalued and the real wages went down rapidly.
- Choose the odd one out: [the economy plummeted]
- The total wealth earned or created in a country in a year is: [GDP]