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1. The negative welfare effects of an income tax in the market for casual and part-time workers is likely less than in the market for
1. The negative welfare effects of an income tax in the market for casual and part-time workers is likely less than in the market for full-time workers.
2. Other things equal, the welfare loss associated with raising money through taxation is smaller the more inelastic is the demand for the good that is taxed.
Are these statements true or false, and please explain why for each, respectively.
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