If Each Taxpayer Paid the Same Lump-Sum Amount Regardless of Income

question 167

Multiple Choice

If each taxpayer paid the same lump-sum amount regardless of income level, the tax system would be

• A) disproportionate.
• B) progressive.
• C) proportional.
• D) regressive.

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Definitions:

Costs

The monetary value of resources consumed or spent to achieve a particular objective.

Benefits

Advantages or positive outcomes that result from a particular action or policy.

Free Rider Problem

A situation where individuals consume a public good without contributing to its cost, benefitting from others' contributions.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by everyone and one person's use does not reduce availability to others.