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  1. Answer the following questions:

  1. What is the central task of any economy?

  2. How is the society to deal with those who are outside of the economic system?

  3. What is the definition of the word «poverty»?

  4. What is a lack of mobility? When may it occur?

  5. What is the way to change distribution in the society?

  6. Is there any difference between cash transfers and in-kind transfers?

  7. What can you say about the poorest recipient?

  1. Deline the terms:

median income proportional taxation

welfare programme cash transfer

official poverty line lack of mobility

poverty network of transfers

  1. Translate into English:

  1. Нерівність у доходах майже така сама, якою вона була відразу після другої світової війни. 2. У Франції та Америці, виявляється, існує найбільша нерівність у розподі­лі прибутків порівняно з Іншими країнами. 3. Стабільність в одержанні певного відсотка сукупного прибутку кож­ною п'ятою частиною населення є одним із вражаючих фак­тів американської економіки. 4. Оподаткування пропор­ційне, якщо особи з більш високим прибутком сплачують у вигляді податків таку саму частку прибутків, як особи з меншими прибутками. 5. Для бідних краще одержувати допомогу грішми, ніж товарами. 6. Давайте гроші та­ким чином, щоб той, хто одержує, завжди мав стимул працювати.

  1. Read and dramatize the following dialogue:

A.; Tell me please, why do we know much less about the distribution of wealth than we do about the distribution of income?

D.: We know much less about it because the data on wealth holdings are not readily available. Indeed, most of the evidence we have on wealth distribution for the U.S. economy is based on work done in the early 1960s.

A.: Subsequent calculations based on data available in 1969 provide essentially the same picture of the distribution of wealth. The top 0,5% of the population held about 23% of the wealth and the top 1% of the population about 30% of the wealth.

D.: What is the situation in the U.S. economy concerning the effects of sex discrimination?

A.: On average, working women earn only $ 0.70 for every $ 1.00 earned by working men. What accounts for this difference?

D.: Two economists studied this question using data from the mid 1970s. At that time, the differences could be accounted for in the following way. First, the work history of women differs considerably from that of men.

  1. : Yes, it does. It's a fact of common knowledge that while most men enter the work force shortly after completing school and continue to work full time thereafter, women have more varied work experience.

£>.; The average white male has spent only six months out of the labor force, most of that time immediately after completing school; in contrast, fhe average white female takes almost a six-year break in mid-career, usually to raise children.

  1. : All of these and other factors combined still leave women with wages $ 174 lower than men,

D.: What does this mean?

  1. : It suggests that markets do not necessarily reward workers just on the basis of productivity and that some sort of discrimination may exist,