Imagine an Excise Tax and a Lump- Sum Tax Which

question 51

Multiple Choice

Imagine an excise tax and a lump- sum tax which would raise the same revenue from an individual Ms. Arbitrary who has convex preferences. If she was given a choice between the two taxes, then:

• A)she would prefer the excise tax.
• B)she would be indifferent between the two taxes.
• C)we cannot know Ms. Arbitrary's preferences regarding the taxes.
• D)she would prefer the lump- sum tax.

---

Definitions:

Cognitive Neuroscience

A field of study that explores the neural mechanisms underlying cognitive functions such as perception, memory, and language.

Brain Activity

The functioning of the brain as evidenced by electrical, chemical, or metabolic changes.

Recollections

Memories or the act of retrieving past experiences or information from one's memory.

Mental Processes

Internal, covert activities of our minds such as thinking, feeling, and remembering.