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:

Keeping On Track

The process of staying focused on a goal or task and making consistent progress towards it.

Productive Agenda

A planned schedule or list of tasks that is designed to achieve maximum efficiency and output.

Supply Information

The act of providing data or details to someone who needs it.

Goals

Targets or desired outcomes that an individual or organization aims to achieve.