Why is government spending typically measured as a percentage of GDP rather than in nominal dollars?

2. Why are expenditures such as crime prevention and education typically done at the state and local level rather than at the federal level?

3. Why is spending by the U.S. government on scientific research at NASA fiscal policy while spending by the University of Illinois is not fiscal policy? Why is a cut in the payroll tax fiscal policy whereas a cut in a state income tax is not fiscal policy?

4. Excise taxes on tobacco and alcohol and state sales taxes are often criticized for being regressive. Although everyone pays the same rate regardless of income, why might this be so?

5. What is the benefit of having state and local taxes on income instead of collecting all such taxes at the federal level?

6. In a booming economy, is the federal government more likely to run surpluses or deficits? What are the various factors at play?

7. Economist Arthur Laffer famously pointed out that, in some cases, income tax revenue can actually go up when tax rates go down. Why might this be the case