A Lump-Sum Tax Is a Tax That

question 70

Multiple Choice

A lump-sum tax is a tax that

• A) can be avoided by strategic behaviour.
• B) does not depend on the actions of the economic agent being taxed.
• C) does not depend on the actions of the government.
• D) distorts economic decisions.
• E) depends on the quantity of taxable goods consumers purchase.

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Definitions:

Superordinate Goal

refers to a shared goal that requires two or more groups to work together, reducing conflict by uniting them towards a common objective.

Social Exchange Theory

A conceptual framework suggesting that social behavior is the result of an exchange process, aiming to maximize benefits and minimize costs.

Altruistic Behavior

Actions taken to benefit others without expectation of reward or recognition, often at a cost to oneself.

Superordinate Goals

Superordinate goals are overarching objectives that can only be achieved by the cooperation of two or more individuals or groups, helping to reduce conflict by aligning interests.