Table 12-15
The dollar amounts in the last three columns are the taxes owed under the three different tax systems.

-A lump-sum tax
A) is also a proportional tax.
B) entails larger deadweight losses than other types of taxes.
C) is the most efficient tax possible.
D) is the most equitable tax possible.

Question

Table 12-15
The dollar amounts in the last three columns are the taxes owed under the three different tax systems.
 
-A lump-sum tax
A) is also a proportional tax. 
B) entails larger deadweight losses than other types of taxes. 
C) is the most efficient tax possible. 
D) is the most equitable tax possible.

Quizplus · Accepted Answer

A lump-sum tax is considered efficient because it does not distort economic decisions, as it is a fixed amount regardless of income or behavior, thus minimizing deadweight losses.

Table 12-15 the Dollar Amounts in the Last Three Columns Are the Are