How do taxes influence the efficiency of resource use? How much does it cost for the government to raise an additional dollar (or $1billion) of tax revenue? During the past five decades, there has...

How do taxes influence the efficiency of resource use? How much does it cost for the government to raise an additional dollar (or $1billion) of tax revenue?

During the past five decades, there has been a shift in the composition of the federal budget toward more spending on income transfers and health care and a smaller share for national defense. Does economics indicate that this change will help Americans achieve higher living standards? Discuss.