Problem 1: Does your state have a state income tax and/or a state sales tax? If yes, how does the tax rate compare to other states? If no, what other revenue sources does your state government rely on for funding? (I live in California )
How can the state or federal government use taxation to implement a social policy? Please give an example.
Problem 2: Discuss one prominent anti-trust case or merger. Why was the anti-trust case prosecuted or the merger executed? What was the outcome?
What is typically the effect of a merger in an industry on its consumers?
Problem 3: This week we discussed the effects of taxes and government regulation on consumers. Economists are often asked by government agencies to conduct studies concerning the likely results of their policies.
Give an example of a public policy problem and apply the cost-benefit analysis technique to it. What other considerations may be taken into account in order to make a decision on the implementation of the policy?