The Effect of Imposing a Lump-Sum Tax Is to

question 84

Multiple Choice

The effect of imposing a lump-sum tax is to

• A)reduce the absolute levels of consumption and saving at each level of GDP and to reduce the size of the multiplier.
• B)reduce the absolute levels of consumption and saving at each level of GDP but to not change the size of the multiplier.
• C)reduce the absolute levels of consumption and saving at each level of GDP and to increase the size of the multiplier.
• D)increase the absolute levels of consumption and saving at each level of GDP and to increase the size of the multiplier.

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Definitions:

Low-ball Technique

A persuasion and sales strategy where an initial, lower price is offered to gain agreement from a buyer, only to increase the price by introducing additional costs or factors.

Social Loafing

A phenomenon observed in group settings wherein individuals put in less effort on a task when working collectively compared to when working individually.

Social Loafing

The phenomenon where individuals exert less effort when working in a group than when working alone.

Philip Zimbardo

An American psychologist known for his research on social influence and the dynamics of time perspective, notably leading the Stanford prison experiment.