Q1. State two economic principles of taxation.
(a) Explain which rule best justifies gasoline's excise tax while the tax revenue is used to maintain or improve the roads?
(b)Explain which rule best justifies the progressive U.S. taxation of corporate profits?
Q2. If we have two models in which we have female literacy rate and in the other one we have female literacy rate along with female fertility rate, then what hypothesis we can use to show whether the change in female literacy rate in both the models is significant or not?