3 ms·
In Scenario B the government gets to collect more tax revenues, and also has additional levers to influence certain behaviour (the government will tax you, but
by __turbobrew__ 11mo ago
In Scenario B the government gets to collect more tax revenues, and also has additional levers to influence certain behaviour (the government will tax you, but give you a tax break if you do Y). Also, the government can make your labor worth less by printing money and increasing inflation.