A.2. The provision of public goods such as roads and bridges can align itself with fiscal policy. President Obama, in discussing his stimulus package, spoke of thousands of shovel-ready projects that would create thousands of jobs. While this does conceptually line up public goods and antirecession policy, how might the latter end up being more important than any legitimate form of the former? A.3. Cigarette taxes are, in part, correcting a negative externality. What is that negative externality? One interesting component of cigarettes is that the problems they create (e.g.. lung cancer) are long term or far into the future. If we image the government has a longer-term view than most individuals, can you think of a more complicated negative extemality that these taxes help to correct? A.4. California is considering an increase in its state cigarette tax by $2 per pack. That would more than triple California's cigarette tax. Based on current cigarette sales in the state, government officials say this tax could generate hundreds of millions of dollars in new revenue. Can you see any problems with this analysis? Could this actually decrease state tax revenues? A.5. The pundit said, "If the government finances consumption goods (like food stamps) with debt, it is passing along a liability to the next generation but no corresponding asset. We are, therefore, making the next generation worse off." Make a case to the contrary using the idea that income redistribution prevents social unrest.