Evaluate the statements as True, False, or Uncertain, andmost important, justify your answer. Your goal is to mention the most important points in defense of your evaluation of the statement. Three good sentences should be sufficient.

1.TFU (with explanation): A utilitarianwho wants to maximize total utility, as measured by the sum of individuals' utility levelswould want the government to focus on maximizing economic efficiency.

2.TFU (with explanation): It's possible that increasing aid to the poor, for example by expanding a cash transfer program (which provides money directly to people with low incomes), improves efficiency.

3.TFU: If the government runs a long-term deficit, that indicates that the government values the welfare of current citizens above the welfare of future citizens.

4.TFU (with explanation): Taxing the production of the good or taxing the pollution created in the production process will both lead to the efficient outcome.

5.TFU (with explanation): If the government has imperfect information about how much it costs polluting firms to reduce pollution, then the government should opt for a tax rather than a quantity restriction to correct the externality.

6.TFU (with explanation): Smoking is a negative consumption externality in the US because it reduces the lives of smokers, which harms society both because of the value of lives lost and the negative impact on taxes that those smokers would pay.

7.TFU (with explanation): Consider a social cost-benefit analysis of a public works project. If the labor market is perfectly competitive, then the cost of hiring workers is actually zero because those workers' former employers no longer have to pay them, so while it costs the government money to hire the workers, the workers' former employers are saving exactly that much money and the cost to society is 0.

8.TFU (with explanation): A certain safety regulation that would save lives has an implied VSL of $30M. The government should enact that regulation.

9.TFU (with explanation): Lobbying is bad for society.

10.TFU (with explanation): Some towns put restrictions on residential lot sizesfor example, "All residential properties in Springfield must be at least 0.5 acres"and such restrictions reduce efficiency.