Choose ONE of the following questions and write a

Choose ONE of the following questions and write a brief response

One Page

1) Who would pay a greater share of special income taxes: employers or workers? Explain, considering the price elasticities of supply and demand for labor. Will the deadweight loss from personal income tax in the U.S. be relatively large or relatively small? How does the price elasticity of supply of labor change for higher income workers as compared to lower income workers? Explain your answers, and then discuss how these considerations should affect U.S. income tax law.

2) Some economists argue that the government should only provide goods. All other goods can be provided by the market, with government subsidy if necessary. Do you agree with this statement? Should the government goods that are not quite pure public goods, but share some of the same characteristics? Are there economic reasons for your answers, or are you making other considerations? Explain your answers.