• During the Revolutionary War, the American colonies could not raise enough tax revenue to fully fund the war effort. To make up the difference, the colonies decided to print more money. Printing money to cover expenditures is sometimes referred to as an "inflation tax." Who do you think is being "taxed" when more money is printed? Why?

• Describe some of the trade-offs faced by each of the following:

a) a family deciding whether to buy a new car

b) a member of Congress deciding how much to spend on national parks

c) a company president deciding whether to open a new factory

d) a professor deciding how much to prepare for class

e) a recent college graduate deciding whether to go to graduate school