B.1. If national defense were handled on a state-by-state basis in the U.S., there would be...

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B.1. If national defense were handled on a state-by-state basis in the U.S., there would be much lower and in all likelihood not enough defense expenditures. Why? B.2. Every politician is pro-education but not every politician supports big spending on schools. If every politician believes there is a public good or positive externality here, why the difference? B.3. Some states have a sophisticated pollution tax system according to which com- panies buy pollution rights from each other (every firm is given the right to pollute a little bit, but a heavy polluter can buy more from another firm that isn't a heavy polluter). If it works well, this system allows more firms to remain in the local economy and still get clean air. Explain. B.4. Income inequality is a popular topic in the U.S. and other wealthy countries but statistically, the worst income inequality in the world is in very poor countries in Africa and Central America. Can you figure out why? B.5. "Using government debt to pay for the interstate highway system in the 1950s made sense. Using debt to fund research to cure cancer makes sense. But using current government debt to pay for current exorbitant government retiree bene- fits makes no sense." Activate Windows Go to Settings to activate Windows. Show all B.1. If national defense were handled on a state-by-state basis in the U.S., there would be much lower and in all likelihood not enough defense expenditures. Why? B.2. Every politician is pro-education but not every politician supports big spending on schools. If every politician believes there is a public good or positive externality here, why the difference? B.3. Some states have a sophisticated pollution tax system according to which com- panies buy pollution rights from each other (every firm is given the right to pollute a little bit, but a heavy polluter can buy more from another firm that isn't a heavy polluter). If it works well, this system allows more firms to remain in the local economy and still get clean air. Explain. B.4. Income inequality is a popular topic in the U.S. and other wealthy countries but statistically, the worst income inequality in the world is in very poor countries in Africa and Central America. Can you figure out why? B.5. "Using government debt to pay for the interstate highway system in the 1950s made sense. Using debt to fund research to cure cancer makes sense. But using current government debt to pay for current exorbitant government retiree bene- fits makes no sense." Activate Windows Go to Settings to activate Windows. Show all