The tax in the above economy is a:
A)10 percent proportional tax.
B)lump-sum tax of $20.
C)lump-sum tax of $10.
D)progressive tax.

Name: The tax in the above economy is a: A)10 percent proportional tax. B)lump-sum tax of $20. C)lump-sum tax of $10. D)progressive tax.
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Question

The tax in the above economy is a:
A)10 percent proportional tax. 
B)lump-sum tax of $20. 
C)lump-sum tax of $10. 
D)progressive tax.

Quizplus · Accepted Answer

A lump-sum tax is a fixed amount of tax that is paid regardless of income or other circumstances. In this economy, the tax revenue is $10 and it is not dependent on income or any other factor, making it a lump-sum tax of $10.

The Tax in the Above Economy Is A