7. What is true about deadweight losses? A) The magnitude of deadweight loss depends on the substitution effect of tax. B) When there is deadweight loss, the government could raise more revenue with lump-sum taxes than with excise tax keeping the consumer equally worse off. C) The government can minimize deadweight loss by taxing goods with inelastic demand. D) All of the above.
8. What is NOT true about progressive taxes?
9. What is an example of benefit taxes?