12 Problems with the Public Sector
12.1 The design of a tax system
Review Activities
Problems
No problems for this section.
External Resources
Khan Academy: Tax Brackets and Progressive Taxation
12.2 role of the government
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Problems
No problems for this section.
External Resources
No external resources for this section.
12.3 growth of government
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Problems
Problem 12.3.1: Suppose that a government begins with $0 in debt. Complete the table below. All values are given in billions of dollars.
| Year | Revenue | Spending | Surplus/Deficit | Debt |
| 2017 | $550 | $600 | ||
| 2018 | $575 | $600 | ||
| 2019 | $600 | $600 | ||
| 2020 | $650 | $625 |
Solutions: -50,-50; -25,-75; 0,-75; +25,-50
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No external resources for this section.
12.4 collective action and the inefficiency of government
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Problems
No problems for this section.
External Resources
No external resources for this section.
12.5 when government works well
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Problems
No problems for this section.
External Resources
No external resources for this section.
12.6 when government works poorly
Review Activities
Problems
No problems for this section.
External Resources
No external resources for this section.
