Answer Key

Economic issues - the business cycle, unemployment, taxation – Practice 1

Choose the correct answer:
  1. “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”.
  2. Making false declarations is called  [tax evasion] and is obviously illegal.
  3. If you inherit a lot of money, you  [are liable] for capital transfer tax.
  4. As temperatures rise, the  [demand] for air-conditioning units increases.
  5. 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]
  6. “I work with a traveling circus in the summer, but it's just closed for the winter.” This is an example of: [seasonal unemployment]
  7. 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]
  8. The  [bust] came in 1999 when the Russian economy crashed and the rouble devalued and the real wages went down rapidly.
  9. Choose the odd one out:  [the economy plummeted]
  10. The total wealth earned or created in a country in a year is:  [GDP]