||Explain the basic functions of
government in a market economy.
markets produce too few public goods and how the government
determines the amount to produce through looking at benefits and
||Describe how the government
taxing harmful spillovers and subsidizing helpful spillovers helps
to resolve the inefficiency they cause.
||Describe major revenue and
expenditure categories and their respective proportions of local,
state and federal budgets.
||Explore the ways that tax
revenue is used in the community.
||Identify taxes paid by
proportional and regressive taxation.
||Determine whether different
types of taxes (including income, sales and social security) are
progressive, proportional or regressive.
||Describe how costs of
government policies may exceed benefits, because social or political
goals other than economic efficiency are being pursued.