1. What is the nature of the deadweight loss accompanying taxes? Why is it often referred to as an “excess burden”? 2. Should policy makers seek to set the tax on an economic activity at a rate that...

1. What is the nature of the deadweight loss accompanying taxes? Why is it often referred to as an “excess burden”?

2. Should policy makers seek to set the tax on an economic activity at a rate that will maximize the revenue derived from the tax? Why or why not? Explain.

May 26, 2022