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Economics True or False for #6-8? 6. [3] A split-rate property tax system that taxes improvements (buildings, etc.) at higher rates than land would improve efficiency compared with a single rate property tax system. 7. [4] The excess burden (deadweight loss) of a retail sales tax is inversely proportional to the square of the tax rate. 8. [4] The excess burden (deadweight loss) of a retail sales tax is inversely proportional to the elasticities of demand and supply. 9. [3] The taxation of intermediate goods (goods used in the production of other goods) reduces the excess of burden of the retail sales tax, all else equal