1.Explain why lump-sum taxes will not cause any losses in efficiency. Are lump-sum taxes feasible? Explain your answer. Lump-sum taxes do not result in substitution effects, but they do affect prices. Is this a contradiction?

2.How can we measure the value of human life? What are some of the problems involved in measuring the value of human life? Explain why saying that each life is priceless is likely to result in more than the efficient amount of investment in life-saving programs.