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.

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Definitions:

Secular

Related to or concerned with worldly rather than spiritual matters; not religious or sacred.

Spiritual

Pertaining to or affecting the human spirit or soul as opposed to material or physical things.

Navajo

A Native American people of the Southwestern United States, known for their rich culture, language, and history.

Evil Magic

Practices believed to harness supernatural powers for malicious purposes, often contrasted with benign or protective magic.