Theory Questions (Choose 2 from the 4 questions below) (40 points) Show all your work and provide in-depth explanations for full credit. Use your own words to answer the questions to illustrate that you understand the subjects and are able to explain them by yourself. 1. You are an advisor to the governor of the State of Illinois. The governor has the idea to finance 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)