Which of the Following in Not a Reason That a Lump-Sum

question 4

Multiple Choice

Which of the following in not a reason that a lump-sum tax imposes a minimal administrative burden on taxpayers?

• A)Everyone can easily compute the amount of tax owed.
• B)There is no benefit to hiring an accountant to do your taxes.
• C)Everyone owes the same amount of tax, regardless of earnings.
• D)The government can easily forecast tax revenues.

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Definitions:

Purely Competitive Conditions

A market scenario where numerous small suppliers offer identical products, resulting in no single supplier having any market control.

Marginal Product

The additional output that is produced by adding one more unit of a particular input while keeping other inputs constant.

Minimizing Costs

A strategy or process aimed at reducing expenses in production or operations to increase profitability.

Substitute Resources

Productive inputs that can be used instead of other inputs in the production process; resources for which an increase in the price of one leads to an increase in the demand for the other.