Exercise 1. Read the text and write the term that best matches each




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Exercise 1. Read the text and write the term that best matches each 
numbered definition: 
balanced budget
deficit spending 
national debt
public welfare 
surplus 
transfer payment
1.
When the amount of tax money coming in is equal to the money going out in 
spending 
2.
The situation that exists when the government spends less than it collects in 
taxes. 
3.
The total of all loans made to the federal government by individuals or 
groups of individuals. 
4.
The situation that exists when the amount of money that the government 
spends in greater than the amount of money that it collect in taxes from its 
citizens. 
5.
The well-being of society. 
6.
Income that is received from the government by people who are not 
currently producing goods or services in exchange for it. 
 
 


Exercise 2. Read the text and give your reasons. 
1.
Government runs with taxes paid by the people. 
2.
For most public goods and services, the consumer is charged a fee 
covering the full cost of the item. 
3.
Government should provide running courts, making and enforcing laws, 
security of the nation. 
4.
You can buy a Treasury note or a bond and lend money to the federal 
government. 
5.
Government spending has increased rapidly. 
6.
The public welfare is not the “business” of government. 
 
Task 3. Grammar 
Exercise 1.
Write sentences using the prompts. One of the verbs must be in the 
past perfect simple.
 
1
we / just / hear / the news / when / you / ring 
2
I / already / think of / that / before / you / suggest / it 

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Exercise 1. Read the text and write the term that best matches each

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