Chapter 8

I would give this chapter a one for difficulty. I would say this because the principle of taxation can be similar to what we learned about consumer and producer surplus in the last chapter. Dead weight taxation is also a topic that we were introduced to previously. The only semi new thing that we learned in the chapter was that as taxes increase, total tax revenue can decrease once it's past a certain point. This can be compared to the principles of elasticity, and how if your curve is elastic then you should lower your prices to increase total revenue. I think taxes are a really important concept because for policy makers, knowing where and much to levy a tax can be crucial. There are so many factors to consider but whether we have a large sweeping government, or one that just does the bare minimum to protect property rights, taxes are necessary.