1. Suppose that government requires l600 million ancs per year to perform its functions. Assume that fam'iers are required to pay taxes of l600 million 'ancs per year. 1. What percentage of annual net product is represented by 600 million 'ancs'? Show your calculations. 2 Assume the farmers obtain a reduction in rent equal to 600 million francs per year. What is amount of rent retained by proprietors if the farmers obtain this reduction? Show your calculations. 3. Given the assumptions used to calculate answers for (l) and (2), which class bears the incidence of the tax? Show your calculations and explain your answer in 100 words or less. 4. Now assume that the farmers bear the entire incidence of the tax and that they harvest one crop per year. How much capital will they have to plant next year's crop, till the land, and harvest their crops? Do you predict net product for next year to be larger, the same as, or smaller than net product this year? Show your calculations and explain what you expect to happen to net product in 100 words or less. II. Assume that net product is produced from 100,000 identical plots of land. There are 100,000 proprietors, and each proprietor owns one plot of land. Each plot produces a net product valued at 20,000 francs per year. 5. Assume, the rate of return on land is 4 percent per year. Calculate the value of a plot of land. Show your calculations. I5. Assume that each proprietor pays an identical tax. How much must each proprietor pay if the government is to obtain 600,000,000 francs per year? 7. Calculate the maximum amount a buyer will pay for a plot of land if a tax of 3,000 francs per year is in effect and the rate of return on land is 4 percent per year. Show your calculations