1. You are an advisor to the governor of the State of Illinois. The governor has the idea to nance schools through a new income tax instead of the current property taxes-based system. Assume that all legal issues are solved and that only your input as an economist is needed. (20 Points) a. How would you expect this change to affect the real estate market? (5 Points) b. Would this change be more impactful for owner-occupiers or landladies/landlords? Explain your answer (5 Points) c. Based on the two above discussed aspects and your own understanding of the property taxes: Would you support the governor to make such a decision, or would you argue against it? (10 Points) 2. We talked about several forms of urban planning during our meetings. Please take some time to think about them and answer the following questions: (20 Points) a. Briefly summarize the major tools local governments have at their disposal to plan the development of a city. (5 Points) b. Please discuss the advantages and disadvantages of zoning laws. (5 Points) c. Do you think stricter zoning is required? Or do you think those regulations should be lifted? Make sure to present a strong argument for your case. (10 Points)