Lump-Sum Taxes Are Rarely Used in the Real World Because

question 97

Multiple Choice

Lump-sum taxes are rarely used in the real world because

• A)while lump-sum taxes have low administrative burdens, they have high deadweight losses.
• B)while lump-sum taxes have low deadweight losses, they have high administrative burdens.
• C)lump-sum taxes are often viewed as unfair because they take the same amount of money from both poor and rich.
• D)lump-sum taxes are very inefficient.

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Definitions:

Corporate Buyout

The acquisition of a controlling interest in a company by another company or investor group, possibly leading to significant management changes.

Age Discrimination

The unfair treatment of individuals based on their age, particularly relevant in employment and opportunities.

AARP

A membership organization for people age 50 and older dedicated to addressing their needs and interests.

Workforce

The group of people who are employed in a company, industry, or country.