1) Carefully explain the distinction between the legal liability
for a tax (its statutory incidence) and its economic incidence? If
it does not matter which side of a market is taxed on economic
incidence grounds, discuss why governments might prefer to
attribute liability to one side or the other. (I don't know how to
answer the second part of the question)
2) Because monopoly profits are simply an income
distributionissue, the conditions for the Fundamental Theorem of
WelfareEconomics are satisfied...
Explain the economic concepts underlying a Pigouvian tax in
the energy sector.
c. Explain the economic concepts underlying an emissions
trading system in the energy sector.
d. Discuss the economic logic underlying urban traffic
policies to manage congestion, protect public health, and reduce
emissions of air poll
Tax incidence. Determine graphically the incidence (on
buyers and sellers) of a unit tax imposed on sellers. Show how
changes in demand elasticity change the relative
incidence.