In Practice

question 11

Multiple Choice

In practice,

• A) taxes are not lump sum taxes.
• B) real wages affect the level of lump sum taxes.
• C) the quantity of profits that the consumer received is dictated by lump sum taxes.
• D) lump sum taxes affect the effective prices that consumers face in the market.
• E) taxes have no distortionary effect.

---

Definitions:

Brain

The central organ of the human nervous system, responsible for processing sensory information, regulating bodily functions, and enabling cognition and emotional responses.

Spinal Cord

The spinal cord is a long, thin, tubular bundle of nervous tissue and support cells that extends from the brainstem to the lower back, serving as a major conduit for information traveling between the brain and the body.

Axons

Long, slender projections of nerve cells (neurons) that transmit electrical impulses away from the neuron's cell body to other neurons, glands, or muscles.

Dendrites

Branch-like extensions of neurons that receive signals from other neurons and conduct them toward the cell body.