1.Explore why lump sum tax, even though efficient are rarely used.
2.Using demand and supply analysis, discuss how a tax on labour income (hours of work available is fixed) creates excess burden between the paid and unpaid labour markets.
3. The Ramsey Rule (inverse elasticity) is efficient yet not always equitable. Explain and discuss this statement.
4. Define excess burden and using budget lines and indifference curves, show how the equivalent variation concept can measure it.