1 PowerPoint Exhibit Slides to Accompany Principles of Economics Fred M. Gottheil Chapter 30 FINANCING GOVERNMENT: TAXES AND DEBT

2 Chapter 30Financing Government: Taxes and Debt © 2001 South-Western EXHIBIT 1PRODUCTION POSSIBILITIES CURVE

3 Chapter 30Financing Government: Taxes and Debt © 2001 South-Western EXHIBIT TAX RATE SCHEDULE FOR MARRIED PERSONS FILING JOINTLY Source: Internal Revenue Service, Instructions for Form 1040 (Washington, D.C.: Department of the Treasury, 2000), p. 7.

4 Chapter 30Financing Government: Taxes and Debt © 2001 South-Western EXHIBIT 3FEDERAL, STATE, AND LOCAL GOVERNMENT REVENUES: 2000 ($ BILLIONS) Source: Survey of Current Business (Washington, D.C.: U.S. Department of Commerce, December 2000).

5 Chapter 30Financing Government: Taxes and Debt © 2001 South-Western EXHIBIT 4THE FEDERAL GOVERNMENT’S SURPLUSES AND DEFICITS: 1970–2000 ($ BILLIONS) Source: Economic Report of the President, 1997 (Washington, D.C.: U.S. Government Printing Office, 1997), p. 394, and Bureau of Economic Analysis, “Overview of the Economy.” 2000.

6 Chapter 30Financing Government: Taxes and Debt © 2001 South-Western EXHIBIT 5OWNERSHIP OF THE U.S. PUBLIC DEBT: 2000 (PERCENTAGE OF TOTAL) * Savings and loan associations, nonprofit institutions, credit unions, mutual savings banks, corporate pension trust funds, certain U.S. Treasury deposit accounts, and federally sponsored agencies. Source: Federal Reserve Bulletin (Washington, D.C., January 2001), p. A27.

7 Chapter 30Financing Government: Taxes and Debt © 2001 South-Western EXHIBIT 6ATHE FEDERAL DEBT Source: Statistical Abstract of the United States, 2000 (Washington, D.C.: U.S. Department of Commerce, 2000).

8 Chapter 30Financing Government: Taxes and Debt © 2001 South-Western EXHIBIT 6BTHE FEDERAL DEBT Source: Statistical Abstract of the United States, 2000 (Washington, D.C.: U.S. Department of Commerce, 2000).

9 Chapter 30Financing Government: Taxes and Debt © 2001 South-Western EXHIBIT 7GROSS PUBLIC DEBT AS A PERCENT OF GDP FOR SELECTED ECONOMIES: 1998 Source: Statistical Abstract of the United States, 2000 (Washington, D.C.: U.S. Department of Commerce, 2000), p. 847.