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VI. Now read the text again and answer the questions.

1. Poverty is ...

A. only found in developing countries.

B. mostly in industrialized countries.

C. found in both developing and industrialized countries.

2. What number of people lives in extreme poverty?

A. three billion

B. two billion

C. one billion

3. How can relative poverty be explained?

A. It takes into account that there are rich people.

B. It’s a kind of poverty found in industrialized countries.

C. It’s a kind of poverty only experienced in Britain.

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4. What cause of poverty is not mentioned in the text?

A. Wa r

B. Lack of natural resources

C. natural disasters

5. Why can’t people escape from the poverty trap?

A. Because they refuse to send their children to school.

B. Because they need any income their children can earn.

C. Because governments don’t provide free education.

6. According to the text, why are countries often trapped in a poverty cycle?

A. There is no money for investment.

B. There are no schools.

C. The land is not good for growing crops.

VII. Discuss these questions with your partner.

  • What do you think it means to be wealthy?

  • Why are some people wealthier than others?

  • What does poverty mean? Is there a way to define it?

  • How many people in the world do you think live in poverty?

— Do you believe people in industrialized countries live in poverty?

  • What do you think are the possible results of living in poverty?

  • In what ways does poverty affect people’s lives?

VIII. Say what you have learned about:

  • Wealth of a person, family, company, country

  • Flow of money

  • Inequalities in wealth

  • Situation in poor countries

  • Huge inequalities in wealth

  • Measure of poverty

  • Absolute poverty

  • Poverty line

  • Poverty trap

Think and give extensive answers.

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Grammar exercises

IX. Translate the sentences. Practise the use of the Absolute Participle Construction (§ 16).

1. Monetary policy affects prices, the aggregate level of output and employment being independent of it. 2. The Central Bank acting as banker to commercial banks, the financial system works steadily. 3. Ceiling prices being controlled by the government, goods may find their way to the black market. 4. With a financial panic everyone wanting his money at the same time, the bank is unable to pay. 5. The two principal economic systems were considered to be capitalism and socialism, mixed economics lying in between them. 6. The world distribution of income is unjust, with poor countries having 61 per cent of the world’s population. 7. Checks being accepted in payment of purchases, people feel that a bank account is even better than money in their pocket. 8. In the next 25 years the average age in the United States increasing, problems of the aged will be important.

X. Supply the correct forms of the verbs (§ 11). Translate the sentences.

1. This government (not to pay) attention to the economists` recommendations. 2. Some economists (to expect) world population (to reach) 12 billion by 2025. 3. The consumer incomes (to rise) which (to result) in lower demand for inferior goods. 4. Economists (to consider) natural resources to be the third factor of production. 5. In future higher prices for oil (to make) research institutes to work at substitutes for oil. 6. To achieve the highest efficiency the economists (to analyse) economic activity of a firm. 7. To run a business (to be) to plan its activity. 8. Our firm (to have) to increase efficiency of labour.