Q1. State two economic principles of taxation and which principle best justifies the excise tax on gasoline, when the tax revenue is used to maintain or improve the roads?
Which principle best justifies the progressive U.S. taxation profits of corporate? Clarify.

Q2. 1) "Unemployment is more important problem than price increases". This kind of statement is normative or positive?
2) You are given a choice between two movie passes, dinner at a Red Lobster and a new book. What is your opportunity cost? Explain.