What Makes a Tax "Efficient"? Describe the Efficiency Properties of a Lump

question 36

Essay

What makes a tax "efficient"? Describe the efficiency properties of a lump sum tax.Under what conditions might a regular unit tax approximate a lump-sum tax? List one trade-off facing policymakers in attempting to minimized the excess burden of taxation.

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Definitions:

OR

In statistics, 'OR' typically refers to the odds ratio, a measure of association between two binary outcomes.

VLOOKUP

A function in spreadsheet programs that searches for a value in the first column of a table array and returns a value in the same row from a specified column.

AND

A logical operator that yields true only if all the operands or expressions being compared are true.

Clustered Column Chart

A type of bar chart that groups related data bars together to facilitate comparison across categories.