1. The Department of Revenue estimates that the special tax dedicated to funding Director’s Initiative for 2014 will be $35 million. Guided by purely economic effectiveness concepts, which project(s) should the Director select and why? (The Director cannot spend more than the annual tax revenue; however, leftover funds can be carried over to the next year.)
2. Will your answer to the question above change if the tax revenues were to be $70 million? Why?
3. Will your answer to the question above change if the tax revenues were to be $120 million? Why?