A Lump-Sum Tax

question 485

Multiple Choice

A lump-sum tax

• A)is most frequently used to tax real property.
• B)does not distort incentives.
• C)distorts incentives more than any other type of tax.
• D)is the most fair tax.

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Definitions:

Delta

In finance, it's a ratio that compares the change in the price of an asset, usually a marketable security, to the corresponding change in the price of its derivative.

Underlying Asset

The financial asset upon which a derivative's price, such as an option or future, is based.

Net Requirements

The total demand for a product or component minus the inventory already on hand or on order, used in manufacturing and inventory management.

Gross Requirements

The total amount of materials or components needed to fulfill production or sales orders, before considering inventory on hand or scheduled receipts.