The midterm consists of four (4) essay questions This is an open book examination and you may consult the class textbooks or any other relevant materials in the preparation of your response. You are expected to provide responses of approximately 450 words for each question. 1. In class we have discussed the role of government in allocating resources through taxation policies. Please describe how these processes work and provide at least two examples. Also, provide your opinion as to which of these examples is most effective in producing positive results in the economy. 2. Governmental budgets are a clear expression of public priorities. Please provide three examples of governmental budget allocations that express specific public policy priorities that are indicated by those allocations. 3. In class we have discussed five key components of the economy. Identify these components and describe the importance and role of each component in relation to the economy.
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