Question 1: Analysis of taxation is complex. The issues you should address when looking at taxes are: the revenue raised, the equity of the tax, and the efficiency of the tax.
a. What is the importance of these three areas?
b. Give an example of a tax that does not meet these requirements and one that does.
Question 2: What is a transfer program? Give an example of a transfer program.
Question 3: What is a market failure? Why does a market failure occur? Give an example of a market failure in your answer.
Question 4: What is a planned economy? Give examples of the benefits and downfalls to a planned economy.