Chapter Outline

18.1 Taxation in Canada

18.2 Evaluating the Tax System

18.3 Public Expenditure in Canada

18.4 Evaluating the Role of Government

AFTER STUDYING THIS CHAPTER YOU WILL BE ABLE TO

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 Learning Objectives (LO)

1. describe the main taxes in use in Canada.

2. explain why a tax can lead to allocative inefficiency.

3. discuss the concept of fiscal federalism in Canada.

4. describe Canada’s major social programs.

5. consider the costs and benefits of government intervention in the

economy.