If a person without a job is not actively looking for work, that person is classified as not being in the labor force

Which of the following is true?

a. Real federal spending per person was approximately 50 times higher in 1900 than 1800. b. Real federal spending per person was approximately 80 times higher in 2012 than 1916. c. Real federal spending per person grew slowly under the Reagan Administration during the 1980s, but it increased rapidly under the Clinton administration in the 1990s. d. In recent years, government expenditures at the state and local levels have been greater than government spending at the federal level.

Suppose you and I are identical. We put up fireworks in our adjacent backyards on a national holiday, and we can both enjoy each other's fireworks. a. Can you identify an externality? b. Can you identify any missing markets? c. Do you think we will provide more or less than the efficient number of fireworks? d. If we could vote on a tax to be imposed on us fund fireworks in our back yards, would we vote for a lump sum tax (imposed equally on both of us) that will cause more fireworks to be put up than what we would put up on our own? e. Suppose instead the government implements a Pigouvian subsidy. How would the number of fireworks compare to what would happen in (d)? How much of a subsidy would you think we would both get for every dollar of fireworks each of us individually buys?

What will be an ideal response?