I would like you to address true/false/uncertain with explanation from (a) to (e).

1. True/False/Uncertain

Explain your answer fully based on what was discussed in class, since all the credit is based on the explanation. Your grade depends entirely on the substance of your justification, not on whether you are correct in writing "True" or "False". Note that it is possible to answer each question for full credit with three sentences or fewer, and answers longer than ten lines long will not be graded.

(a) Empirically, married women with high wage rates work more than married women with low wage rates. This implies that the labor supply of married women is very elastic with respect to their net-of-tax wage rate.

(b) Pre-tax top incomes increased sharply in the US in the 1980s when the top tax rate was cut. Therefore, cutting the top tax rate was a desirable policy.

(c) In the basic labor supply theory model we used in class, increasing the linear tax rate on earnings reduces labor supply.

(d) The US tax system is regressive at the top of the distribution even though the individual income tax is nominally progressive.

(e) The Earned Income Tax Credit is a desirable policy only if society values the welfare of low income workers more than the welfare of those with zero earnings.