Comment on the following statement (25 marks)

a. If the demand for good does not change, does this mean there is no excess burden?

b. In a three-good model (leisure, goodx, goody), a proportionately equal amount of tax on good x and y will lead to a Pareto inefficient outcome

c. A land tax of 20 percent is going to reduce the value of land by 20 percent. Show through calculation.

d. A partial factor tax on capital in the manufacturing sector as opposed to capital in the agricultural sector, hurts capital owners.

Course : Public Sector Economics