_____ tax does NOT distort incentives and is best at promoting economic efficiency.

Question

Quizplus · Accepted Answer

A lump-sum tax is a fixed amount of tax that is imposed on all individuals regardless of their income, wealth, or consumption. This type of tax does not distort incentives because it does not change based on an individual's activities or behavior. It is considered the most efficient tax because it does not create any deadweight loss or reduce economic growth.

_____ Tax Does NOT Distort Incentives and Is Best at Promoting