Indicate whether each of the following statements is true, false or uncertain and briefly

explain your answer.

a)The optimal nonlinear income tax function has the property that the marginal tax rate is always positive. [7 marks]

(c) Taxation can be justified on efficiency grounds in the long run in both a neoclassical economy and a Schumpeterian economy. [7 marks]

(b) The income tax rate determined by majority voting is Pareto-efficient while the level of public good provision determined by majority voting is not Pareto-efficient.