Read the text and choose the best answer to the questions

Every year, Sweden publishes everyone's income tax returns. So do Finland and Norway. And
nobody really cares. By contrast, U.S. law prohibits releasing anybody's tax information.
Imagine the howl if the IRS put tax returns online, so co-workers, neighbors and mothers-in-
law could see what someone earns. That happened in Italy earlier this year, when the outgoing
government of Prime Minister Romano Prodi briefly posted taxpayers' incomes on the
Internet, and newspapers picked up the list.
Two weeks ago, Sweden published the tax returns of ordinary wage-earners. In November or
December, Swedes can see how much high-rollers made-with their income from dividends and
other investments-plus how much they paid in taxes for 2007. Sweden's policy of making tax
returns public-as in Finland and Norway-stems from a tradition of open records and
transparency in government, except in cases of national security and some aspects of criminal
investigations."The right of public access to documents is laid down in the constitution,"
Graner says of Sweden's practice since the 18th century. Making the data public demonstrates
the Scandinavian tradition of jantelag, which translates roughly as nobody is better than
anyone else, says Veera Heinonen, spokeswoman for the Finnish Embassy in London.
"Finland is a very egalitarian country, and it's a very high-tax society, so it provides checks and
balances," Heinonen says. She says people's earnings can be a good source of gossip. Is
anybody ambarrassed ?. "Well, maybe some chief executives, " she says.
1. According to the article, Italians.
A. Wanted their tax information to be made public
B. Didn't want their tax return information to be made public
C. Welcomed their tax return information to be made public
D. Don't care whether or not their information is published
2. Why do the Scandinavian countries make everyone's tax information public?
A. Because they have a tradition of open records and transparency in government.
B. Because people are very curious.
C. Because the European Union makes them do this.
D. Because they want their citizens not to evade tax.
3. An individual's tax information might not be published if:
A. An individual requests it.
B. B. There's an ongoing criminal investigation.
C. An individual makes more than $100,000 per year.
D. It isn't related to national security.
4. How long has this been going on on Sweden?
A. Since the 18th
B. Century 2007
C. Since 1984
D. Since November 2007
5. According to the text, people's earnings are …….in Finland.
A. A popular topic to talkative people
B. Interesting information
C. Famous topic to politicians
D. An embarrassing problem
I. Choose the best answer A, B, C or D to complete the sentences.
1. Increasing ……….has led to a massive increase in the number of foreign exchange
transactions in recent decades.
A. international B. global C. globalization D. economy
2. The government made serious attempts to raise the ..... of living.
A. standard B. cost C. level D. mode
3. National public debts,………..on a world scale, have almost shown a tendency to increase
without exception.
A. taken B. take C. took D. being taken
4. Monetary policy is one of the tools that a ……Government uses to ìnluence its economy.
A. nation B. national C. nationality D. native
5. Macroeconomic stability means………., low inflation, high economic growth and so on.
A. low unemployment B. low competition C. high production D. B&C
6. Spending on………..(e.g. improvements to our motorway network) helps provide the
capacity needed for other businesses to flourish.
A. transport system B. infrastructure C. accommodation D. industry
7. The supply of a good is……….related to the price of the inputs used to make the good.
A. substantially B. positively C. significantly D. negatively
8. The equilibrium price changes when the supply and demand curves…………
A. move B. change C. shift D. stand the same
9. Value-added tax is a typical example of………..
A. direct tax B. indirect tax C. income tax D. sales tax
10. Money accepted in……… for goods and services and debts makes the trading process
simpler and more efficient.
A. supply B. purchase C. payment D. demand
II. Read the passage carefully and choose the best answer A, B, C, or D.
The most important function of money is to serve as a medium of exchange. To be a successful
medium of exchange, money must be commonly accepted by people in exchange for goods
and services. While functioning as a medium of exchange, money benefits the society in a
number of ways.
(a) It overcomes the inconvenience of baiter system.
(b) It promotes transactional efficiency in exchange by facilitating the multiple exchange of
goods and services with minimum effort and time,
(c) It promotes allocation efficiency by facilitating specialization in production and trade,
(d) It allows freedom of choice in the sense that a person can use his money to buy the things
he wants.
Money serves as a common measure of value in terms of which the value of all goods and
services is measured and expressed. By acting as a common denominator, money has provided
a language of economic communication. It has made transactions easy and simplified the
problem of measuring and comparing the prices of goods and services in the market.
To be satisfactory measure of value, the monetary units must be invariable. In other words, it
must maintain a stable value. A fluctuating monetary unit creates a number of socio-economic
problems. Normally, the value of money, i.e., its purchasing power, does not remain constant;
it rises during periods of falling prices and falls during periods of rising prices.
Money not only helps current transactions though functions as a medium of exchange, but
facilitates credit transaction through its function as a standard of deferred payments. But, to
become a satisfactory standard of deferred payments, money must maintain a constant value
through time; if its value increases through time, it will benefit the creditors at the cost of
debtors; if its value falls, it will benefit the debtors at the cost of creditors.
Money provides a liquid store of value because it is so easy to spend and so easy to store. By
acting as a store of value, money provides security to the individuals to meet unpredictable
emergencies and to pay debts that are fixed in terms of money.
It was Keynes who first fully realized the liquid store value of money function and regarded
money as a link between the present and the future. This, however, does not mean that money
is the most satisfactory liquid store of value. To become a satisfactory store of value, money
must have a stable value.
1.The most important function of money is
A. a means of payment
B. a measure of value
C. a store of value
D. a standard of deferred payment
2. Serving as a medium of exchange, money benefits the society in a way that
A. it reduces allocation efficiency
B. it eliminates transactional efficiency
C. it removes the difficulties of barter system
D. it restricts freedom of choice
3. The advantage of money serving as a common measure of value is
A. that a person can use his money to buy the things he wants most
B. providing a simple way to compare the prices and the values of various
C. that it can be used to make purchases in the future
D. that it is useful when there is inflation in the economy
4. What is necessary to make the function as standard of deferred payment satisfactory?
A. the value of money must be changeable through time
B. the value of money rises during periods of falling prices
C. the value of money must be constant through time
D. money is more liquid
5. Why does money act as a liquid store of value?
A. it provides security to the individuals
B. it is a link between the present and the future
C. its value is changeable through time
D. it is easy to spend
III. Match the suitable terms in the box with their definitions from 1-5
Depreciation (3) economics (2) reserve (4) tax avoidance (5)
premium tariff (1) tax evasion
1. A tax that is paid on goods coming into or going out of a country.
2. The social science that deals with the production, distribution, and consumption of goods
and services and with the theory and management of economies.
3. A decrease in value over a period of time.
4. Minimum amount of cash that banks and other depository institutions are required by law to
keep on hand, and which may not be used for lending or investing.
5. Reducing the amount of tax you pay to a legal minimum.
IV. Answer two questions based on the reading texts you have learnt in your course book.
1. Under what circumstance is deficit spending harmful? And why?
Deficit spending is harmful when unemployment is low, and the economy is
overheating. A deficit can result in rising price and inflation. Additional government
spending creates more competition for scare workers and resources.
2. How can individuals avoid paying taxes?
- Employers give high-paid employees lots of perk such as company cars, free heath
insuarance, lunch instead of taxable income.
- Postpone the payment of putting on a part of salary on life insuarance policies,
pension plan.
- Donations to charities can be subtracted from taxable income.
VI. English - Vietnamese translation
1. Fiscal policy is an important instrument to stabilize the economy, that is, to overcome
economic recession and control inflation.
=> Chính sách tài khóa là một công cụ quan trọng để ổn định nền kinh tế, nghĩa là vượt qua
suy thoái kinh tế và kiểm soát lạm phát
2. The biggest purpose of progressive income tax is to lessen the inequality of incomes among
individuals in society.
=> Mục đích lớn nhất của thuế thu nhập lũy tiến là giảm bớt sự bất bình đẳng về thu nhập giữa
những cá nhân trong xã hội.
3. Learning about economic concepts can help you to make financial decisions, shape public
policy, and see the world in a new way.
=> Nghiên cứu các khái niệm kinh tế học có thể giúp bạn đưa ra những quyết định tài chính,
định hình chính sách công và nhìn thế giới theo một cách mới.
VII. Vietnamese - English translation.
1. Thị trường tài chính đóng vai trò là trung gian tài chính giữa bên cho vay và người đi vay.
=> Finace markets act as financial intermediaries between lenders and borrowers.
2. Mức dự trữ bắt buộc, lãi suất chiết khấu, nghiệp vụ thị trường mở là những công cụ thường
được sử dụng bởi Ngân hàng Trung ương.
=> Reserve requirement, discount rate, open market operations are tools usually used by
Central Bank
3. Để thúc đẩy tăng trưởng, cần có các chính sách kinh tế vĩ mô linh hoạt và ổn định hệ thống
tài chính quốc gia.
=> To promote growth, it is necessary to have flexible macroeconomic policies and to
stabilaze the national finacial system.
I. Choose the best answer A, B, C or D to complete the sentences.
1. Inflation is generally defined as the ...... in the average prices of most goods and services in
one year as compared to the previous year.
A. raise B. rising C. rise D. raising.
2. Taxation as a term …. to all types of taxes, from income to gift to estate taxes.
A. applies B. apply C. applied D. applying.
3. The job of the Central Bank is to……… the amount of money and credit in the economy.
A. examine B. investigate C. provide D. control.
4. All govemnments intervene through their…… policies in a bid to achieve certain policy
objectives.
A. economy B. microeconomic C. macroeconomic D. economical
5. Fiscal policy involves the use of government spending, taxation and………to influence both
the economy.
A. investing B. savings C. borrowing D. depositing
6. The relationship between price and quantity supplied is called the……...
A. negative relation B. law of supply C. law of demand D. opposite relation
7. The advance in technology can create a (an)…….in the firm's costs.
A. increase B. rise C. amount D. decrease
8. A………. market is a market in which there are many buyers and sellers of the same good
or service.
A. competed B. competition C. competitive D. competing.
9. The standard……… for international trade and investment is the US dollar.
A. capital B. currency C. unit D. payment
10……… is imposed on the wealth possessed by individuals in a country.
A. wealth tax B. capital gain tax C. value-added tax D. income tax
II. Read the passage carefully and choose the best answer A, B, C, or D.
In a socialist economy, the key industries are owned and controlled by the government. Such
industries usually include transportation, public utilities, communications. and those producing
important materials such as steel. (In France. the major banks are nationalized or transferred to
government control. Banking, too, is considered extremely important to a nation's economy.)
Land and raw materials may also be the property of the state in a socialist economy.
Depending on the country, private ownership of real property (such as land and buildings) and
smaller or less vital businesses is permitted to varying degrees. People usually, may choose
their own occupations, but many works in industries owned by the state.
What to produce and how to produce it are determined in accordance with national goals,
which are based on projected needs, and the availability of resources-at least for government-
owned industries. The distribution of goods and services is also controlled by the state to the
extent that it controls rents and wages. Among the professed aims of socialist countries are the
equitable distribution of income, the elimination of poverty and the distribution of social
services such as medical care to all who need them, smooth economic growth, and elimination
of the waste that supposedly accompanies capitalist competition. Britain, France, Sweden, and
India are democratic countries whose mixed economies include a very visible degree of
socialism.
1. What types of industries are NOT owned by the state in a socialist country?
A. railway station
B. aviation
C. family companies
D. steel producers
2. In France, what is NOT true about banks?
A. important companies
B. nationalized companies
C. private companies
D. state-controlled companies
3. What is inferred about people in a socialist country?
A. They are very flexible in choice of companies to work for.
B. Most people work for private companies.
C. Most people can set up their own businesses.
D. Most people work for state companies.
4. Which of the following statement is true in a socialist country?
A. The govemnment mostly decides production quotas.
B. Companies can freely decide what and how to produce.
C. All production quotas are determined by the market.
D. Prices are determined by the law of supply and demand.
5. What is one of the aims of socialist countries?
A. To slow down economic growth.
B. To redistribute income.
C. To increase wages.
D. The stimulation of poverty
III. Match the suitable terms in the box with their definitions from 1-5
market economy tax shelter (3) mixed economy (5) production (1)
public finance (4) commission (2) tax haven
1. The creation or manufacture for sale of goods and services with exchange value.
2. An amount of money that is paid to somebody for selling goods and that increases with the
amount of goods that are sold
3. A way of using or investing money so that you can legally
4. The study of how the govemnment sector pays for expenditures through taxes and
borrowing.
5. An economic system in which some goods and services are produced by the govemnment
and some by private enterprise.
IV. Answer two questions based on the reading texts you have learnt in your course book.
1. Under what circumstances is deficit spending helpful? And why?
=> Deficit spending is helpful when unemployment is hight or the economy is slowing down.
The government undertaken projects to create more jobs. More money is being pumped into
the economy, the economy will then expand.
2. How can firms avoid paying taxes?
- Company can bring forward capital expenditure so that at the end of the year all the profits
are used up
- Mutinatinal companies set up head office in tax haven
VI. English - Vietnamese translation
1. People not only use coins and paper notes as money but also cheques and credit cards.
=> Mọi người không chỉ sử dụng đồng xu và giấy làm tiền mà còn sử dụng cả séc và thẻ tín
dụng
2. The Government's budget allocates public funds to specific tasks, such as education, health,
transport, agriculture, defense, and so on.
=> Ngân sách của Chính phủ phân bổ các nguồn thu công cho các nhiệm vụ cụ thể như giáo
dục, sức khỏe, giao thông, nông nghiệp, quốc phòng,…
3. Insurance is a way of protecting yourself and your family from a financial loss. Generally,
the premium for a big insurance cover is much lesser in terms of money paid.
=> Bảo hiểm là một cách để ảo vệ chính bản thân và gia đình của bạn khỏi tổn thất tài chính.
Nói chung, phí bảo hiểm ít hơn nhiều so với bồi thường của bảo hiểm.
VII. Vietnamese - English translation.
1. Adam Smith cho rằng thị trường có thể tự điều tiết mà không cần có sự can thiệp hay kiểm
soát của chính phủ
=> Adam Smith belived that markets can regualte themselves without a need of the
government intervention or control.
2. Hiện nay, việc thanh toán bằng thẻ tín dụng và các loại tiền điện tử khác ngày càng trở nên
phố biển.
=> Nowadays, payments by credit cards and other kinds of electronic money are becoming
more and more popular.
3. London là thị trường ngoại hối hàng đầu thế giới nhờ có lượng giao dịch tài chính quốc tế
khổng lồ.
=> London is the leading foreign exchange market in the world thanks to the great volume of
international financial transactions.
1. Choose the best answer A. B, C or D to complete the sentences.
1. Capital transfer tax is a typical example of ....
A. direct tax B. indirect tax C. income tax D. sales tax
2. ……….is the tax imposed on sales of goods and services usually levied as a percentage of,
and added to, the price paid by the consumer
A. customs duty B. tariff C. sales tax D. VAT
3. Without money, all transactions would have to be conducted by…….., which involves direct
exchange of one good or service for another.
A. transfer B. change C. barter D. purchase
4. As more of a commodity is supplied, its price will fall until it reaches its ...... price.
A. competive B. fair C. equilibrium D. reasonable
5. The ………. power of the local currency has halved.
A. developing B. increasing C. selling D. purchasing.
6. The money....... was controlled by the federal reserve as they had the ability to print money
at any time
A. provision B. demand C. supply D. aggregate demand.
7. It is necessary to study………. because it can help you to use your resources more
effectively.
A. economy B. economist C. economies D. economics
8. Microeconomics is the study of………. individuals and companies make choices regarding
the allocation and utilization of resources.
A. what B. why C. when D. how
9. Expenditures are everything that a government actually spends money……….., such as
social programs, education, and infrastructure.
A. on B. for C. to D. at
10. Much of the government's spending is a form of income or wealth………..
A. redistribute B. redistribution C. redistributed D. redistributing.
Infrastructure (3) quantity demanded GDP (2) Economic growth.
Equilibrium (5) recession (1) quantity supplied (4)
1. A difficult time for the economy of a country, when there is less trade and industrial activity
than usual, and more people are unemployed.
2. The total value of goods and services produced by a country in one year.
3. The basic systems and services that are necessary for a country or an organization to run
smoothly, for example buildings, transport and water and power supplies.
4. The quantity of goods or services that sellers are willing and able to sell at a certain price in
a period of time.
5. The economic condition in which there is neither excess demand nor excess supply in a
market.
IV. Complete the following sentences using given prompts.
1. In/ planned economy /, / allocation decisions / be/ make / mostly / the government/
=> In planned economy, the allocation decisions are made mostly by the government.
2. Macrocconomics/ be/ influence/ mainly/ macroeconomic policies/ include/monetary policy/
fiscal policy.
=> Macroeconomics is influenced mainly by macroeconomic policies including monetary
policy and fiscal policy.
3. Foreign trade deficit/ be/ excess/ nation's / imports/ goods and services/ over/ its exports /
goods and services.
=> Foreign trade deficit is the excess of the nation’s imports of goods and services over its
exports of goods and services.
4. Demand / refer / all / possible / quantity / goods / services / buyers /be/ willing /able / buy /
various / price.
=> Demand referes to all possible quantities of goods and services that buyers are willing and
able to buy at various prices.
5. Trust funds/ be/ use/ only/ pay/ very/ specific/ programs/ such/ Social Security/Medicare.
=> Trust funds is used only to pay for very specific programs such as Social Security and
Medicare.
1. Microeconomics / focus / behavior / individuals / industries / making/ decisions/particular
goods/
=> Microeconomics focuses on the behavior of individuals and industries in making decisions
about particular goods.
2. Karl Marx/ theorize/ laborers/ should/ own/ control/ means/ production/ ensure/social and
economic stability/
=> Karl Marx theorized that laborers should own and control the means of production to
ensure both social and economic stability.
3. A planned economy/ be/ economic system/ which/ structure/ the market/ be/deliberately/
plan/ the state.
=> A planned economy is an economic system in which the structure of the market is
deliberately planned by the state.
4. Microeconomics/ study/ how/ consumers/ firms/ behave/ while/ make/ decisions/allocation/
scarce/ resources/
=> Microeconomics is the study of how consumers and firms behave while making decisions
regarding the allocation of scare resources.
5. Monetary policy / control / a nation / money supply / supervise / each country /central bank.
=> Monetary policy controls a national’s money supply is supervised by each country’s central
bank.
1. Economists/ study/ ways/ how/ a society/ use/ scarce resources/ produce/ goods /services/
=> Economists study the ways how a society uses scarce resources to produce goods and
services.
2. In capitalism/ most/ important/ means/ production/be/ money/ rather/ land / labor.
=> In capitalism, the most important means of production is money rather than land or labor.
3. A mixed economy/ be/ economic system/ which/ goods/ be/ produced/ both/government/
private enterprises.
=> A mixed economy is an economic system in which goods are produced by both the
government and private enterprises.
4. Firms / face / limits / terms / kinds / products / that/ they / can / produce /, / and /resources /
available / produce / them.
=> Firms face limits in terms of the kinds of products that they can producce, and resources
availabe to produce them.
5. Balance of trade/ refer/ difference/ between/ the money/ receive/ exports / and / the money/
spend / imports.
=> Balance of trade refers to the difference between the money that a country receives from
exports and the money it spends on imports.
V. Answer two questions based on the reading texts you have learnt in your course book.
1. What are 2 kinds of public debts? How are they generated?
Public debts held by the public is the amount of money government borrow from bublic can be
individuals, organization in that country and from foreign countries.
Public debts held by Federal account is the amount of money government borrow from itself.
2. What are two branches of economics? What do they study?
Microeconomics is the study of individual and business decisions, focuses on supply, demand
and other forces that determine the price. Take a bottom-up approach.
Macroeconomics looks at a higher up country and government decisions, centers on economy-
wide phenomena such as GDP, national income, inflation, … Take a top-dowm approach.
1. What are some main sources of government's revenue? How can governments raise more
money to spend?
+ Difference type of tax
+ Borrowing by issuing and selling government securities.
+ Fee for public services, profit from investment
2. What are resources of consumers? How do they allocate their resources?
The resource of consumers is income. In order to allocate their resources, they based on their
preferences, maximize their well-being by trading off not only the purchase of more of some
goods with the purchase of less of the others but also current consumption with future
consumption.
1. What are 2 kinds of funds generated from taxation? What are they spent on?
Federal fund is generated from individual income tax and corporate tax is used for any
programs when congress and president conduct annual appropriation process.
Trust fund is generated from payroll tax, is used for specific programs such as social security
and medicare.
VI. English - Vietnamese translation
1. The most important objective of monetary policy is to control inflation and stabilize prices.
=> Mục tiêu quan trọng nhất của chính sách tiền tệ là để kiểm soát lạm phát và ổn định giá.
2. Investors value liquidity because they need to sell their securities quickly to raise cash. So,
investors will pay more for securities that are highly liquid.
=> Nhà đầu tư đánh giá cao tính thanh khoản bởi vì họ cần bán chứng khoán của mình một
cách nhanh chóng để thu tiền mặt. Vì thế các nhà đầu tư sẽ trả nhiều hơn cho các chứng khoán
có tính thanh khoản cao.
3. The relationship of demand and supply plays a significant role in a market, allowing
efficient allocation of resources and determining a market price for the product or service.
=> Mối quan hệ giữa cung và cầu đóng vai trò đáng kể trong thị trường, cho phép phân bổ
hiệu quả các nguồn tài nguyên và xác định giá thị trường cho sản phẩm hoặc dịch vụ.
3. The foreign exchange market is an OTC market because it operates throughout 24 hours of
the day and transactions are made via means of communication.
=> Thị trường ngoại hối là một thị trường phi tập trung bởi vì nó hoạt động suốt 24 giờ một
ngày và các giao dịch được thực hiện thông qua các phương tiện truyền thông.
1. Stock exchanges encourage investments because they enable investors to sell their securities
easily when their need for cash arises
=> Giao dịch chứng khoán khuyển khích đầu tư vì chúng cho phép các nhà đầu tư bán chứng
khoán của họ một cách dễ dàng khi nhu cầu của họ cho tiền mặt tăng.
2. Money is the most liquid of all resources. Possession of money enables you to get hold of
almost any commodity in any place.
=> Tiền có tính thanh khoản cao nhất trong các loại tài nguyên. Sở hữu tiền cho phép bạn nắm
giữ hầu hết mọi hàng hóa ở bất kỳ đâu.
VII. Vietnamese - English translation.
1. Kinh tế học được biết tới là một môn khoa học quan trọng nghiên cứu cách thức nguồn lực
khan hiếm của quốc gia được sử dụng để tạo ra sản phẩm và dịch vụ nhằm đáp ứng nhu cầu xã
hội.
=> Economics is an important science that studies how scare national sources are used to
create goods and services to meet social needs.
2. Với mạng lưới những chi nhánh, đại lý rộng khắp và quan hệ giao dịch với các đối tác trên
toàn thế giới, ngân hàng thương mại có thể đáp ứng tốt nhu cầu của khách hàng về ngoại hối
với số lượng lớn.
=> With an extensive network of branches, agents and trading relationships with partners all
over the world, commercial banks can meet the needs of customers for foreign exchange in
large quantities.
1. Nền kinh tế thị trường đã cho thấy tính ưu thế và hiệu quả lớn hơn trong việc giải quyết
xung đột giữa nguồn lực khan hiếm và nhu cầu xã hội vô hạn.
=> The market economy has shown greater superiority and efficiency in resolving the conflic
between scare resources and infinite social needs.
2. Chính sách tài khóa thắt chặt hay chính sách tiền tệ thắt chặt giúp làm giảm lượng cung tiền,
giảm sức ép đối với giá cả và kiểm soát lạm phát hiệu quả.
=> Tight fiscal policy or tight monetary policy helps reduce the money supply, reduce pressure
on prices and control inflation effectively.
1. Trong kinh tế kế hoạch, chính phú lên kể hoạch và kiểm soát mọi hoạt động kinh tế, quyết
định các vấn đề kinh tế chủ đạo: sản xuất cái gì, như thể nào và cho ai.
=> In the planned economy, the government plans and controls all economic activities, decides
the main economic issues: what, how and for whom to produce.
2. Chính sách tiền tệ và tài khóa là hai chính sách kinh tế vĩ mô chủ đạo mà chính phủ sử dụng
nhằm ổn định nền kinh tế, kiểm soát lạm phát và giái quyết thất nghiệp.
=> Monetary policy and fiscal policy are the two main macroeconomic policies that the
government uses to stabilize the economy, control inflation and solve unemployment.
Exercise 1: Choose the best complete the sentences
1. All government intervene through their……….. policies in a bid to achieve certain policy
objectives.
A. economic B. microeconomic C. macroeconomic D. economical
2. Britain last year spent nearly £5000 million and more on………. food than selling abroad.
A. import B. imports C. importing D. imported
3. Monetary policy is one of the tools that a………… government uses to influence its
economy.
A. nation B. national C. nationality D. native
4. Government policy about exports and imports is…………
A. Commercial policy B. Monetary policy C. Fiscal policy D. financial policy
5. ……… Is an amount of probable income and expenditure during a stated period.
A. tax B. asset C. loan D. budget
6. Government securities with terms of more than one year are…………
A. bill of exchange B. government bond C. treasury bills D. capital bills
7. Macroeconomic stability means………, low inflation, high economic growth and so on.
A. low competition B. low production C. low unemployment D. a and b
8. Spending on………(eg: improvements to out motorway network) helps provide the capacity
needed for other business to flourish.
A. infrastructure B. accommodation C. industry D. transport system
9. It is not the employer………. pays the wages. Employers only handle the money. It is the
customer………. pays the wages.
A. who B. that C. whom D. which
10………. will lead to an increase in the demand of money:
A. An increase in the supply of money
B. An increase in the price level
C. An increase in the level of aggregate output.
D. An increase of interest rate
Exercise 2: Reading the following text and choose the best answers.
HCM City Tax Department releases list of firms on tax debt
HCM city's tax Department has announced a list of nearly 1.700 companies with total unpaid
taxes debt of almost VND 4.5 trillion ($US 193.5 million). By the end of last month, the
department collected tax debts of nearly VND 2,5 trillion, accounting for about 11 cents of
total debts accumulated until December 31,2018.
According to the Finance Ministry's official dispatch No. 99901/BTC-TCT from November
2018, tax agencies would make phone calls, send text messages or email to inform companies
of their tax debt if they delayed paying for between one and 30 days: If payment is delayed for
between,31 and 60 days, the tax agencies would issue notifications and fine. If payment is
delayed for between 61 and 90 days, the agency would inform the offending party of the
various types of punishment. For debt unpaid for between 91 and 120 days, tax agencies are
authorized to implement forcible measures including extracting or freezing bank accounts. For
taxpayers who have either accrued the largest amounts of unpaid taxes in a locality or have
failed to pay their taxes within 120 days despite notifications from tax agencies, the agency
will freeze their assets and declare their receipts invalid.
1.What action has the HCM City's tax department done with the list of companies in tax debt?
a. collected.
b. asked for.
c. made public.
d. informed.
2.How much is.11 per cent of total debts accumulated until December 31,2018 equivalent to?
a. 1,700 companies
b. VND 4,5 trillion
c. $US 193.5 trillion
d. VND 2.5 trillion
3. What measures the tax agencies would apply if companies delayed paying tax debt for
between one and 30 days?
a. Freeze taxpayer's bank accounts
b. Issue fines to the taxpayers
c. Communicate to the taxpayers.
d. Freeze their asset.
4. How many categories are the tax debts classified in order to apply different measures?
a. Four
b. Five
c. Six
d. Many
5.When will the agency freeze taxpayer's assets and declare their receipts invalid?
a. Taxpayers have failed to respond to notification from the agency
b. Taxpayers have not made payment within 100 days
c. Taxpayers have accrued the largest amounts of tax debts in locality
d. Taxpayers have not paid a visit to the tax office.
Exercise 3: Match the words or phares from 1-5 with the definitions from a- e
Obligation (e) Tax shelter (d) Maturity (b) Economic output (a) Demand (c)
a. The value of goods and services produced in a country or area.
b. The date on which a bill of exchange, promissory note, debenture or loan stock becomes due
for payment or repayment.
c. The amount of goods and services that people desire in particular period.
d. A way to delay the payment of tax to a later time.
e. The relation between debtor and creditor.
Exercise 4: Answer the questions:
1. Why is open market operations the most important quantity tools of monetary policy?
Because open market operations are the Fed’s buying and selling government securities.
+ If the Fed buys bonds => money supply will increase
+ If the Fed sells bonds => money supply will decrease
2. What is the difference between spot transactions and forward transactions?
Spot transactions are undertaken for an actual exchange of currencies two business days later.
Forward transactions involve a delivery date futher into the future, possibly as fas as a year or
more ahead.
Exercise 5: Complete the sentences:
1. taxes/design/ both/ discourage/and/ encourge/ spending.
=>Taxes are designed both to discourage and to encourage spending.
2. Insurance/financial definition /be/ financial arrangement/ redistribute/ costs/unexpected
loses.
=>Insurance in the financial definition is a financial arrangement that aims to redistrubute the
costs of unexpected losses.
3. Central Banks/try/keep/one eye/unemployment/, /result/economic slowdown/and/one
eye/inflation/result/overheated economy.
=> Central Banks try to keep one eye on unemployment in order to prevent the result of an
economic slowdown and one eye on flation in order to preven the result of an overheated
econnomy.
4. When/ unemploymen/ be/ high/, / goverment/ can/ undertake/projects/use/workers/who/
otherwise/ be /idle.
=> When unemployment is high, the government can undertake some projects to use workers
who otherwise being idle.
5. The job/ the Central Bank/ be/ control/ the amount/ money and credit/ economy.
=> The job of the Central Bank is controlling the amount of money and credit in the economy.
Exercise 6: Translate English into Vietnamese
1. Income in America is taxed by the federal government, most state governments, and many
local governments.
=> Thu nhập ở Mỹ được tính thuế bởi chính phủ liên bang, hầu hết các chính phủ tiểu bang và
nhiều chính phủ địa phương.
2. In the mathematical model for the cost of production, the short-run total cost is equal to
fixed cost plus total variable cost.
=> Trong mô hình toán học cho chi phí sản xuất, tổng chi phí ngắn hạn bằng chi phí cố định
cộng với tổng chi phí biến đổi.
3. The most common types of personal insurance policies are auto, health, homeowners, and
life. Most individuals in the United States have at least one of these types of insurange, and car
insurance is required by law.
=> Các loại hợp đồng bảo hiểm cá nhân phổ biến nhất là ô tô, sức khỏe, nhà cửa và nhân thọ.
Hầu hết các cá nhân ở Mỹ có ít nhất một trong những loại bảo hiểm này, và bảo hiểm ô tô thì
bắt buộc bởi luật pháp.
I. Choose the best answer.
1. Revenue is calculated by……… the price at which goods or services are sold by the number
of units or amount sold.
A. multipe B. multiplying C. summing D. accounting
2. The supply of a good is……. related to the price of inputs used to make the good
A. nagatively B. positively C. significantly D. substantially
3. Interest rate swaps often……….. a fixed payment for a floating payment that is linked to an
interest rate.
A. pay B. swap C. exchange D. change.
4. Individuals and corporate entities can find it attractive to establish subsidiaries or move
themselves to………..to reduce taxation levels.
A. tax havens B. tax avoidance C. other countries D. tax shelter
5. The standard……….for international trade and investment is the US dollar.
A. capital B. currency C. unit D. payment
6. Macroeconomic stability means…………, low inflation, high economic growth and so on.
A. low unemployment B. low competition C. high production D. A&B
7. GNP is a ........ of a country's economic performance, or what its citizens produced and
whether they produced these items within its borders.
A. ability B. measure C. measurement D. indicator
8. Banks often cooperate with………... in efforts to stabilize economy and prevent inflation.
A. foreign banks B. financial institutions C. government D. commercial banks
9. Spending on………. (e.g. improvements to our motorway network) helps provide the
capacity needed for other businesses to flourish.
A. transport system B. infrastructure C. accommodation D. indust
10. Any……… transaction or violations of the policy must be reported to your immediate
supervisor.
A. improper B. reserved C.extinct D. anxious
II. Reading
During the 1960's and 1970's, the primary economic development strategy of local
governments in the United States was to attract manufacturing industries. Unfortunately, this
strategy was usually implemented at another community's expense: many manufacturing
facilities were lured away from their moorings elsewhere through tax incentives and slick
promotional efforts. Through the transfer of jobs and related revenues that resulted from this
practice, one town's triumph could become another town's tragedy.
In the 1980's the strategy shifted from this zero-sum game to one called "high-technology
development," in which local governments competed to attract newly formed high-technology
manufacturing firms. Although this approach was preferable to victimizing other geographical
areas by taking their jobs, it also had its shortcomings: high-tech manufacturing firms employ
only a specially trained fraction of the manufacturing workforce, and there simply are not
enough high-tech firms to satisfy all geographic areas.
Recently, local governments have increasingly come to recognize the advantages of yet a third
strategy: the promotion of homegrown small businesses. Small indigenous businesses are
created by a nearly ubiquitous resource, local entrepreneurs. With roots in their communities,
these individuals are less likely to be enticed away by incentives offered by another
community. Indigenous industry and talent are kept at home, creating an environment that both
provides jobs and fosters further entrepreneurship.
1. The primary purpose of the passage is to
A. advocate more effective strategies for encouraging the development of high-technology
enterprises in the United States.
B. acknowledge and counter adverse criticism of programs being used to stimulate local
economic development.
C. define and explore promotional efforts used by local governments to attract new industry.
D review and evaluate strategies and programs that have been used to stimulate economic
development.
2. Which of the following can be inferred about minority communities on the basis of the
passage?
A. They provide a significant portion of the funds that become available for investment in the
financial market.
B. They are penalized by the tax system, which increases the inequality of the distribution of
income between investors and wage earners.
C. They do not receive the share of the amount of funds available for investment that would be
expected according to traditional financial-market analysis.
D. They are not granted governmental subsidies to assist in underwriting the cost of economic
development.
3. The author's main point is argued by
A. giving examples that support a conventional generalization.
B showing that omissions in a theoretical description make it inapplicable in certain cases
C. showing that the view opposite to the author's is self-contradictory.
D. criticizing the presuppositions of a proposed plan.
4. According to the passage, a questionable assumption of the conventional theory about
the operation of financial markets is that
A. those who engage in financial-market transactions are perfectly well informed about the
market.
B. creditworthiness as determined by lenders is a factor determining market access.
C. market structure and market dynamics depend on income distribution.
D. inequalities in income distribution are increased by the functioning of the financial market.
5. According to the passage, analysts have conventionally tended to view those who participate
in financial market as
A. judging investment preferences in terms of the good of society as a whole
B. influencing the allocation of funds through prior ownership of certain kinds of assets
C. varying in market power with respect to one another.
D. having equal opportunities to engage in transactions.
III. Make complete sentences.
1. Fiscal policy/ government/policy/ related/taxation/ public spending.

2. Medium/ exchange/ anything/widely/ accepted/ payment/ goods/ services/settlement/ debts.

Meoltum a extange refers to anything that rs widhely auep ted as payment.
3. London's/ trading/ position/ arises/ partly/ the/ large volume/ international/financial/
business/ generated/ here.
4. Customers/ the/ market/ because/ they/ require/ foreign/ currency/ the/ course/their/ cross-
border/ trade/ investment business.
5. The/ discount rate/ the/ rate/ interest/ the Fed/ charges/ those/ loans.
IV. Match the words or phrases in the box with their definitions below.
a. Economic output d. Regressive g. Government budget
deficit
b. Money accounting e. Treasury Bills
h. Gross Domestic Product
c. National Debt f. Depreciation accounting
k. Deductive
1. The total amount of money borrowed by the central government of a country on which it
has to pay interest
2. The value of all goods and service produced in a particular country
3. Reducing the value of a fixed asset, by charging it against profit
4. Short-term government securities, sold at a discount, bearing no interest rate
5. The excess of government expenditures (on goods, services and transfer payments)
V. Answer these questions.
1. What does theory of the firm indicate? Theory of consumer indicate.
2. What are 4 functions of money?
VI. Translate into English
1. Thuế giá trị gia tăng áp dụng đối với hàng hóa, dịch vụ trong nước hoặc nhập khẩu được
mua vào và bán ra để sản xuất, kinh doanh và tiêu thụ.

2. Nếu không sử dụng tiền, nền kinh tế hiện đại sẽ không vận hành trơn tru và sản xuất sẽ bị
thụt lùi một cách nghiêm trọng.

3. Ngân hàng Nhà Nước thực hiện nghiệp vụ thị trường mở thông qua việc mua, bán giấy tờ có
giá với các tổ chức tín dụng và quy định các loại giấy tờ có giá được giao dịch thông qua
nghiệp vụ thị trường mở.
VII. Translate into Vietnamese.
1. Reconciling financing needs with macroeconomic stability will require a more
comprehenive policy framework across all the major policy instruments: exchange rate policy,
monetary policy, and fiscal policy.
2. Direct taxes are primarily taxes on natural persons and they are typically based on the
taxpayer's ability to pay as measured by income, consumption, or net wealth.
3. Macroeconomists try to understand the factors that either promote or retard economic
growth in order to support economic policies that will support development, progress, and
rising living standards.
I. CHOOSE THE BEST ANSWER
1. The government should ... more national budget to education and healthcare.
a. provide b. Allocate c. Distribute d. Share
2. ... is a way to reduce the amount of tax you pay to a legal minimum.
a. tax avoidance b. tax shelter c. tax evasion d. tax heaven
3. It is also a means by which a … of income & wealth can be achieved.
a. distribution b. distributing c. redistributing d. redistribution
4. GNP is a … of a country’s economic performance, or what its citizens produced and
whether they produced these items within its borders.
a. ability b. measure c. measurement d. Indicator (chỉ tiêu)
5. Increasing … has led to a massive increase in the number of foreign exchange transactions
in recent decades.
a. international market b. global c. globalization d. economy
6. The relationship between price and quantity supplied is called the …
a. negative relation b. law of supply c. law of demand d. opposite relation
7. The standard … for internationa trade and investment is the US dollar.
a. capital b. currency c. unit d. payment
8. When debts are denomiated in money, the real value of debts may change due to inflation
and ………….
a. crisis b. chaos c. Devaluation (sự phá giá) d. deflation
9. By bringing forward capital expenditure, a company can ... year-end taxable income and
therefore .... its tax expense.
a. increase... increase b. increase... decrease
c. decrease...increase d. decrease... decrease
10. If a central bank uses the tools of monetary policy to reduce the demand for goods and
services, the likely result is _________ inflation and _________unemployment in the short
run.
a. lower; higher b. lower; lower
c. higher; higher d. higher; lower
II. READING
The International Monetary Fund (IMF) is an organization of 189 member countries. It
stabilizes the global economy in three ways. First, it monitors global conditions and identifies
risks. Second, it advises its members on how to improve their economies. Third, it provides
technical assistance and short-term loans to prevent financial crises. The IMF’s goal is to
prevent these disasters by guiding its members. These countries are willing to give up some of
their sovereign authority to achieve that aim.
The IMF has the rare ability to look into and review the economies of all its member countries.
As a result, it has its finger on the pulse of the global economy better than any other
organization. The IMF produces a wealth of analytical reports. It provides the World
Economic Outlook, the Global Financial Stability Report, and the Fiscal Monitor each year. It
also delves into regional and country-specific assessments. It uses this information to
determine which countries need to improve their policies. Hence, the IMF can identify which
countries threaten global stability. The member countries have agreed to listen to the IMF’s
recommendations because they want to improve their economies and remove these threats.
Since the Mexican peso crisis of 1994-95 and the Asian crisis of 1997-98, the IMF has taken a
more active role to help countries prevent financial crises. It develops standards that its
members should follow. For example, members agree to provide adequate foreign exchange
reserves in good times. That helps them increase spending to boost their economies during
recessions. The IMF reports on member countries’s observance of these standards. It also
issues member country reports that investors use to make well-informed decisions. That
improves the functioning of financial markets. The IMF also encourages sustained growth and
high living standards, which is the best way to reduce members’s vulnerability to crises.
Question 1: What does the passage mainly discuss?
A. IMF and its objectives and role
B. History of IMF
C. Organizing structure of IMF
D. Members of IMF
Question 2: The word “look into” in paragraph 2 can best be replaced by
A. find
B. supply
C. examine
D. obtain
Question 3: What can be inferred from paragraph 2?
A. IMF evaluates other organizations.
B. IMF surveys global conditions.
C. IMF identifies which countries can borrow money
D. IMF recommends how to overcome crisis
Question 4: The word “It” in paragraph 2 refers to
A. Global economy
B. Organization
C. Analytical report
D. IMF
Question 5: According to paragraph 3, which of the following is NOT a method of the
IMF to help countries prevent financial crises?
A. Developing standards for members
B. Issuing member country reports
C. Encouraging sustained growth and high living standards
D. Lending developing countries funds to overcome
III. MAKE COMPLETE SENTENCES
1. IF/ government/ increase/ spending/ build/ new highway/,/construction/highway/will/
create/jobs.
=> If the government increases spending to build a new highway, the construction of the
highway will create jobs.
2. Expansionary policy/might/ occur/when/ government/ feel/its/economy/be/not/ grow/ fast/
enough/or/ employment/be/too/high.
=> Expansionary policy might occurs when the government feels its economy isn’t growing
fast enough or the unemployment is too high.
3. fiscal deficit/ public debt ratio/ have/ expand/ sharp/ many countries/ because/affect/ the
crisis/ GDP/ and/tax revenues/ well/ cost/ the fiscal/ response/ the crisis.
=> The fiscal deficit and public debt ratio have expanded sarply in many countries because the
affect of the crisis to GDP and tax revenues as well as the cost of the fiscal reponses to the
crisis.
4. deficit spend/-/ that/be/,/spend/ fund/obtain/by/ borrow/or/print/instead/ tax/-/can/ be/
help/for/ economy.
=> Deficit spending – that is, spending funds obtain by borrowing or printing instead of tax –
can be helpful for the economy.
5. These/ factor/will/affect/amount/revenue/raise/ through/taxe/ amount/ money/require/
government programs.
=> These factors will affect the amount of revenue raised through taxes, the amount of money
required for government programs.
IV: MATCHING
production factors (D) nominal gross domestic product (GDP) (A)
reserve requirement (B) foreign trade deficit (E) Hedging (C)
A. the total value of goods and services produced in a country in a single year in constant
prices
B. The required percentage of reserves (deposits) that banks and thrifts must hold in each or in
deposits at the central bank
C. Trying to insure against unfavorable price movements by way of futures contracts
D. inputs that are used in the production of goods or services including land, labor, capital and
entrepreneurship.
E. the excess of national imports of goods and services over its exports of goods and services.
V. ANSWER 2 QUESTIONS
1. How does the supply curve shift?
The shift factor of supply includes technology, the costs of input, seller’s expectation, tax, …
For example, when there is an improvement in technology => the costs of production will
decrease => the seller is willing and able to produce more goods and services at various prices
=> the supply curve will shift to the right.
2. What is the difference between microeconomics and macroeconomics?
Microeconomics is the study of individual and business decisions, focuses on the supply,
demand and other forces that determine the prices. Take a bottom-up approach.
Macroeconomics looks at higher government and country dicisions, focuses on economic-
wide phenomena such as GDP, national income, inflation, … Take a top-down approach.
VI. TRANSLATION
1.Translate the following sentences into English.
- Macroeconomics studies the movements and major economic relationships of a country on
the level of the entire national economy. Specific subjects of macroeconomics include gross
product, employment, inflation, growth, business cycles,...
=> Kinh tế học vĩ mô nghiên cứu sự dịch chuyển và các mối quan hệ kinh tế chính của một
quốc gia trên mức độ toàn bộ nền kinh tế quốc gia. Các đối tượng cụ thể của kinh tế học vĩ mô
bao gồm tổng sản phẩm, việc làm, lạm phát, tăng trưởng, chu kỳ kinh doanh,…
- The primary objective of fiscal policy is to reduce the size of output volatility over the
business cycle. This goal leads to the view that the government needs to regulate the operation
of the economy.
=> Mục tiêu chính của chính sách tiền tệ là làm giảm quy mô biến động sản lượng trong chu
kỳ kinh doanh. Mục tiêu này dẫn đến quan điểm rằng chính phủ cần điều tiết hoạt động của
nền kinh tế.
- When properly applied, theories of economics can provide insight into how the economy
works and the long-term consequences of particular policies and decisions.
=> Khi được áp dụng đúng cách, các lý thuyết về kinh tế học có thể cung cấp cái nhìn sâu sắc
về cách thức hoạt động của nền kinh tế và hậu quả lâu dài của các chính sách và quyết định cụ
thể.
2.Translate the following sentences into Vietnamese.
- Để ngăn chặn tình trạng lạm phát xảy ra, chính phủ sẽ sử dụng kết hợp chính sách tiền tệ thắt
chặt nhằm đẩy lãi suất lên cao và giảm bớt chi tiêu của khu vực tư nhân, và cụ thể là đầu tư và
tiêu dùng.
=> To prevent inflation from occurring, the government will use a combinement of tigh
monetary policy to push up interest rates and private sector spending , and specifically
investment and comsuption.
- Các khoản thu thuế được tập trung vào Ngân sách nhà nước là những khoản thu nhập của nhà
nước được hình thành trong quá trình nhà nước tham gia phân phối của cải xã hội dưới hình
thức giá trị.
=> Tax revenues focused on the State Budget are state revenues formed during the state’s
participation in the distribution of the social wealth in the form of value.
- Ngân hàng trung ương chính là cơ quan tổ chức thực hiện các chính sách tiền tệ này vì chúng
sẽ tác động đến tổng cầu và sản lượng trong nước nên trở thành một công cụ ổn định kinh tế
hữu hiệu của chính phủ hiện nay.
=> The Central Bank is the organiser of these monetary policies because they will affects to
domestic output and aggregate demand, making them an effective economic stabilization tool
of current government.