Use separate sheets of paper as needed to answer. Please be sure to put your name on your answer sheets and the number of the question you are answering. When done staple all your answer sheets and your exam together and hand them in.
Please explain your responses.
1.Suppose a citizen proposal for a project before the city indicates the project is "infinitely valuable" because it will generate about $2 million in revenue every year forever. Also they point out it will raise local property values by about $20 million and thus increase tax revenues.
4. Suppose someone suggests: "Empirical data indicates that the quantity purchased of home fax machines tends to increase with personal income. Therefore we should tax home fax machines since this will be a progressive tax." Discuss this idea. Please include definitions of the key terms used in your arguments.
5. What’s the difference between the economic justifications for social insurance programs such as Medicare and Unemployment insurance versus social redistribution programs such as TANF and Food Stamps?