Survey of Economics, 4e / Ch. 16 The Public Sector ©2004 South-Western, a division of Thomson Learning™ CHAPTER 16 The Public Sector

Survey of Economics, 4e / Ch. 16 The Public Sector ©2004 South-Western, a division of Thomson Learning™ 2 EXHIBIT 16-1The Growth of Government Expenditures as a Percentage of GDP in the United States, 1929–2001 Sources: Economic Report of the President, 2002, Table B-79; and Bureau of Economic Analysis, SelectTable.asp?Selected=N, Table 1.

Survey of Economics, 4e / Ch. 16 The Public Sector ©2004 South-Western, a division of Thomson Learning™ 3 EXHIBIT 16-2Federal Expenditures, 1970–2001 Sources: Economic Report of the President, 1975, Table C-65, p. 325, and Economic Report of the President, 2002, Table B-81.

Survey of Economics, 4e / Ch. 16 The Public Sector ©2004 South-Western, a division of Thomson Learning™ 4 EXHIBIT 16-3State and Local Government Expenditures, 1970–2000 Source: U.S. Census Bureau,

Survey of Economics, 4e / Ch. 16 The Public Sector ©2004 South-Western, a division of Thomson Learning™ 5 EXHIBIT 16-4Government Expenditures in Other Countries, 2001 Source: OECD Outlook, Dec. 2001, Annex Table 29.

Survey of Economics, 4e / Ch. 16 The Public Sector ©2004 South-Western, a division of Thomson Learning™ 6 EXHIBIT 16-5Federal, State, and Local Government Receipts, 2001 Sources: Economic Report of the President, 2002, Table B-81; and Bureau of Economic Analysis, Table 3.3.

Survey of Economics, 4e / Ch. 16 The Public Sector ©2004 South-Western, a division of Thomson Learning™ 7 EXHIBIT 16-6The Taxation Burden in Selected Countries, 2001 Source: OECD Outlook, Dec. 2001, Annex Table 29.

Survey of Economics, 4e / Ch. 16 The Public Sector ©2004 South-Western, a division of Thomson Learning™ 8 EXHIBIT 16-7The Growth of Taxes in the United States, 1920–2001 Sources: Economic Report of the President, 2002, Table B-79 and Bureau of Economic Analysis, Tables 1.1 and 3.3.

Survey of Economics, 4e / Ch. 16 The Public Sector ©2004 South-Western, a division of Thomson Learning™ 9 EXHIBIT 16-8Federal Individual Income Tax Rate Schedule for a Single Taxpayer, 2001 *Tax calculated at the top of the taxable income brackets. Source: Internal Revenue Service, Publication 17, Your Federal Income Tax, 2001, Tax Rate Schedules, p. 275.

Survey of Economics, 4e / Ch. 16 The Public Sector ©2004 South-Western, a division of Thomson Learning™ 10 EXHIBIT 16-9New Federal Income Tax Rate Schedules

Survey of Economics, 4e / Ch. 16 The Public Sector ©2004 South-Western, a division of Thomson Learning™ 11 EXHIBIT 16-10The Progressive Income Tax versus a Flat Tax

Survey of Economics, 4e / Ch. 16 The Public Sector ©2004 South-Western, a division of Thomson Learning™ 12 EXHIBIT 16-11Majority-Rule Benefit-Cost Analysis of Two Park Projects