NAME VANISHA PATIKA SARI

NPM C1C020055

CLASS 1C AKUNTANSI

ENGLISH TASK WEEK 14

1. Discussion
a. Does (or would) the government in your country exploit the political business cycle by
increasing the money supply or government spending or lowering taxes, in order to
increase economic activity in the months before an election , despice the long-term
infalationary consequences?
Answer
I think Indonesia has explosted the political business cycle by increasing the money
supply and government spending, thiss can do seen from the economic situation
lending up the election from 2000, before eclection period and there was increase in
government spending
b. Do you agree the central banks should be controlled by (uneleted) bankers rather than
by elected governments- which will often dp everthing possible to get re-elected?
Answer
I am agree if central banks should be controlled by banks rather than by
regulated by bankers who supprnise the work of commerciall banks and financial
institutions the central bank aiso acts as a bank to the government and the than
government can also borrow the some money from the central bank for state heeds,
but the government aiso intervents in controlling the central bank, money by make the
policies headed for the county’s economy
c. Do you agree that price stability (i.e. keeping inflation low) is more important than
other economic aims, such as attempting to reduce uncemployment?
Answer
I am agree that price stability (i.e keeing inflation low) is more important the
other economic aims, because the price stability or keeping unflation low can
mamtain economic condition in a good situation and faci-litate production adivities
and impove the welfare of the community, and result in unconmpetitive real domestic
 intrest retes so as to proulde put presure an the an the values of rupiah in the long
term, the increase in inflation will cause an increase in umemplayment this is olve to
the incepose in production coste

2.d Reading

What is the Friedman's' opinion of the activities of the US government?

Answer
According to the friedmans, the role of the government has expanded for too much. It’s
interventions in the economy might even end economic progress. The government severely
limits people’s freedom to spen their money and work as they choose.

2.e Comprehension

1. In which sentence do the Friedmans criticize taxation?

Answer
Cureently, more than 40% of our income is disposed of on our loshalf by government
at federal, state and local levels combined,

2. What do they say about road safety legislation?

Answer
They disapprove of the law that makes it compulsory to fix seat belts to cors. (then
free to choose was written, it was not yet compulsory in the osh to use the eat belts
fitted in cars)

3. What is the only restriction they believe to be necessary regarding professional

occupations, business and trade?
Answer
That all business activities and transactions are voluntary and nobody was firce’ar
correction.

4. What do they say about the law regarding, for example, doctors and dentists?
Answer
 They dispprove of is necessity of doctors (physiciens) and denties requirins a
government. Controlled permit or a licence before they can go into business, and they
regret that doctors are not free to choose which drugs at medicines to prescribe, but
must obey lows and restictions that are sometimes unique to the USA.

5. What is their objection to the law regarding labour contracts?

Answer
They believe that workess should be free to work any number of hours they agree
with their employes, without restrictions imposed by the government.

6. According to what you have read here, how would you characterize the
Friedmans' politics?
Answer
The friedmans clearly believe in free markets and few government restictions. They
are probality best dectibes as right wing libertarion.

2f. Vocabulary

Match up the words on the left with the definitions on the right.

1. Costly = c. expensive
2. Disposed of = h. spent used or consurned
3. On our behalf = d. done for us
4. A physician = b. a medical doctor
5. Ailments = e. 9non senior) illness
6. To resort t force = j. to compel people to do something egalnit their will
7. To coesce = i. to use violence
8. A mortician = f. someone who arranges funerals
9. A plumber = g. someone who fixed water pipes
10. A host of = a. a large number of
TAXATION

2a. Dissussion

You will find the usual names of the taxes you have just described in the exersice which
follows.

● Shop
● Evering mall
● Last will & testament

2b. Vocabulary

Which term do the following sentences define?

1. The tax people pay on their wages and salaries is called

Answer: B. income tax
2. A tax on wages and salaries or on company profits is a/an
Answer: A. direct tax
3. A tax levied at a higher rate on higher incomes is called a
Answer: B. regesive tax
4. A tax paid on property, sales transactions,imports and so on is a/an
Answer: C. value added tax
5. A tax collected at eatch stage of production excluding the already-taxed coats from
previour stages, is called a/an…
Answer: C. value added tax
6. Profits made by seiling assets are generally liable to a…
Answer: A. capital gains tax
7. Difts and inheritances over a certain value are ofter liable to a…
Answer: A. capital gains tax

8. The annual tax imfosed on people’s fortunes ( in some countries) is a/an…

Answer: C. wealth tax
9. Making false declarations to the tax authorities is called…
Answer: C. tax evasion
10. Reducing the amount of tax you pay to a legal minimum is called…
Answer: B. tax avoidance
2c. Reading

Read the text opposite and decide which paragraphs could be given the following
headings.
Answer
(B) Advantages and disadvatages of differents tax system
(E) Aoiding tax on profits
(C) Avoiding tax on salaries
(D) Tax evasion
(A) The function of taxation

2d. COMPREHESION
Accourding to te text,are the following statement TRUE or FALSE?

1. Taxes can be designed both to discourage and to encourage spending. (FALSE)

2. The same amount of money can be taxed more than once. (TRUE)
3. Progressive taxes may discourage people from working extra hours. (FALSE)
4. Sales taxes are unfair because poor people spend more than the rich. (FALSE)
5. The Italian government knows that about one seventh of national income escapes
taxation. (TRUE)
6. "Loopholes' are a common form of tax evasion. (TRUE)
7. If you pay a lot of your income into a pension fund or a life insurance policy you
never
have to pay tax on it. (TRUE)
8. A company that makes an unusually large profit during a tax year might quickly
decide to spend it, for example, on a new factory or equipment. (FALSE)

2e. Vocabulary
Find words in the text that mean the following.
1. reducing the value of a fixed asset, by charging it against profits
answer
Depreciation
2. something which discourages an action
answer
Disincentive

3. an adjective describing a tax that is proportionally higher for people with less money
answer
Regressive

4. spending money to buy things, rather than saving it

answer
Conjumptian

5. working for yourself, being your own boss

answer
Self- employed

6. a tax on incomes that pays for sickness benefit, unemployment benefit. and old-age
pensions
answer
National insurance

7. non-financial benefits or advantages of a job

answer
Perks

8. a way to delay the payment of tax to a later time

answer
Tax shelters

9. an adjective describing expenditures that can be taken away from taxable income or
profits
answer
Tax dedacrible
 10. country offering very low tax rates to foreign businesses
answer
Tax havens

2f. Discussion
As a present and future taxpayer, do you prefer direct or indirect taxes, and progressive
or non-progressive taxes?
a. I Drefer indirect tax because this tax the harden can be transferred or shil’ted to
another party. In other words, the payment can be represiented by another party. So,
for example, if I have an ohstacle to pay taxes, I can ask my friends or relatives to pay
it first.
b. I prefer non-progresive tax because this tax will not increase even if I own more than
one vehicle