Indicate whether the following statements are true, false, or uncertain. Give a short justification for each of your choices. Marks for this question are based entirely on the quality of your explanations. If a word or phrase is underlined, your answer should include a concise definition of the word or phrase. 1. (5 points) At a Pareto efficient allocation of resources, consumers indifference curves between any two commodities must be tangent to each other. 2. (5 points) In Canada, the personal income tax does not affect total labour supplied in the economy and, hence, acts as a non-distortionary, lump-sum tax. 3. (5 points) Consider a world with only three goods: two consumption goods and leisure. A sales tax at a rate of 25 percent has the same excess burden as a wage tax of 20 percent. 1