Asked by
kundan kumar
on Nov 17, 2024
Verified
A lump-sum tax minimizes deadweight loss.
Lump-Sum Tax
A tax that is the same amount for every person.
Deadweight Loss
A cost to society created by market inefficiency, which occurs when supply and demand are out of equilibrium.
- Comprehend the idea and effects of deadweight loss due to taxation.
- Develop knowledge regarding the positives and traits of distinct tax structures, including those based on consumption and fixed-amount taxes.
Verified Answer
JE
Learning Objectives
- Comprehend the idea and effects of deadweight loss due to taxation.
- Develop knowledge regarding the positives and traits of distinct tax structures, including those based on consumption and fixed-amount taxes.