Principles of Microeconomics, 7th Edition

Published by South-Western College
ISBN 10: 128516590X
ISBN 13: 978-1-28516-590-5

Chapter 12 - Part IV - The Design of the Tax System - Questions for Review - Page 253: 5

Answer

A lump-sum tax is the same for every person and is efficient because it causes no deadweight loss as it does not distort incentives, as a person's decisions have no tax consequences, and there is minimal administrative burden.

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