Lump-Sum Taxes Do Not Prevent Prices from Equaling the Marginal

question 7

True/False

Lump-sum taxes do not prevent prices from equaling the marginal social cost and benefit of any goods and services.

---

Definitions:

Cognition

The cognitive process of gaining understanding and knowledge via thinking, experiences, and sensory input.

Albert Bandura

A psychologist known for his work on social learning theory and the concept of self-efficacy.

Negatively Reinforced

Strengthening a behavior because a negative condition is removed or avoided as a consequence of the behavior.

Incessant Nagging

Continuous and often repetitive complaining or scolding about something, usually in a bothersome or tiresome way.