The Lump Sum Principle Suggests That the Tax That Reduces

question 20

Multiple Choice

The lump sum principle suggests that the tax that reduces utility the least is

• A)a tax on income
• B)a tax on a good with many substitutes
• C)an equal tax per-unit on all goods
• D)a tax on a good with only a few substitutes

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Definitions:

Directed Verdict

A ruling by a judge in a jury trial, taking the decision out of the jury’s hands because one party has not provided sufficient evidence to prove their case.

Motion

A formal request made to a court for an order or ruling on a particular point before, during, or after a trial.

Evidence Support

The substantiation of a claim or argument in a court of law through the presentation of evidence, such as documents or witness testimony.

Fundamentally Flawed

A term indicating that something is wrong or defective at its very foundation or basis.