A Lump-Sum Tax: Is the Most Efficient Form of Taxation

question 16

Multiple Choice

A lump-sum tax: is the most efficient form of taxation. charges the same amount to each taxpayer. is a regressive tax.

• A)II only
• B)II and III only
• C)I and III only
• D)I, II, and III

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Definitions:

Availability Heuristic

A mental shortcut that relies on immediate examples that come to mind when evaluating a specific topic, concept, method, or decision.

Representativeness Heuristic

A cognitive shortcut in which one makes judgments about the probability of an event based on how closely it matches one's stereotypes or expectations.

Anchoring and Adjustment Heuristic

A cognitive bias where individuals rely too heavily on an initial piece of information (the "anchor") when making decisions, adjusting insufficiently from this starting point.

Ethical Criteria

Standards or principles used to determine the rightness or wrongness of an action, often based on moral considerations.