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Government at a Glance
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after-tax allocation amount analysis argue assets assume behavior billion capital gains Chapter commodity consider consumer surplus consumers consumption corporate cost-benefit analysis decisions deduction deficit demand curve depends discussion dollar earnings econometric economists effect elasticity equal Equation equilibrium example excess burden expenditures externality federal fig leaves Figure finance firms health insurance Hence horizontal important incentives income distribution income tax increase indifference curve individuals interest investment labor supply levied lump sum tax marginal cost marginal tax rate measured ment opportunity cost optimal tax output Pareto efficient payments percent person Pigouvian tax pollution preferences present value problem produce property tax purchase quantity rate of return received reduced requires saving Social Security social welfare function spending subsidy supply curve Suppose tax incidence tax liability tax system taxation theory tion transfer unit utility vote voter wage welfare economics workers