Explain why government borrowing shifts the burden from present taxpayers to future
taxpayers.
Answer:
If the supply curve of X is flat (elastic) and the demand curve is steep (inelastic), then a
$2 tax on producers of X raises price ___ than $1 and most of the burden falls on __.
Answer:
Since the mid-1980s, each year payroll taxes have been ___ benefits.
Answer:
Local revenue comes mainly from the ___ tax.
Answer:
In theory it is ____ for government to borrow to finance capital expenditures because
future taxpayers _______.
Answer:
In contrast to the EITC, a family’s NIT would equal a percentage of the gap between the
family’s ______ and a ______.
Answer:
Use a diagram to explain the optimal quality of a public school and how taxes can be
set so that there is unanimous support for this quality from its citizens.
Answer:
Under government reinsurance, government would reimburse ___ for X% of the
amount by which the patient’s medical bill ____.
Answer: