Lump Sum Taxes

question 7

Multiple Choice

Lump sum taxes

• A)create no excess burden.
• B)are not as widely used as other forms of taxation.
• C)generally lack a sense of equity.
• D)all of the above

---

Definitions:

Industry Equilibrium

A state where supply and demand in an industry are balanced, leading to stable prices and quantities.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the financial gain in excess of the opportunity costs.

Long-run Equilibrium

A state in which all firms in a market are earning zero economic profits, ensuring that no firm has an incentive to enter or exit the market.

Industry

Describes the aggregate of manufacturing or technically productive enterprises in a particular field, often named after its principal product.