Principle of Microeconomics, Fall 2017 Homework #3 26. Lump-sum taxes are rarely
ID: 1120076 • Letter: P
Question
Principle of Microeconomics, Fall 2017 Homework #3 26. Lump-sum taxes are rarely used in the real world because a. while lump-sum taxes have low administrative burdens, they have high deadweight losses. b. while lump-sum taxes have low deadweight losses, they have high administrative burdens. c. lump-sum taxes are often viewed as unfair because they take the same amount of moncy from both Instructor: Hanol Lee Due: 12 December 2017 (Before class) poor and rich. d. lump-sum taxes are very inefficient. 27. Vertical equity states that taxpayers with a greater ability to pay taxes should a. contribute a decreasing proportion of each increment in income to taxes. b. contribute a larger amount than those with a lesser ability to pay c. be less subject to administrative burdens of a tax. d. be less subject to tax distortions that lead to deadweight losses. 28. The most efficient tax possible is a a. marginal income tax. b. lump-sum tax c. consumption tax d. corporate profit tax. 29. The benefits principle is used to justify a. sales taxes. b. gasoline taxes. c. "sin" taxes on cigarettes and alcoholie beverages. d. personal income taxes. 30. The benefits principle is used to justify a. sales taxes. b. gasoline taxes c. "sin" taxes on cigarettes and alcoholic beverages. d. personal income taxes.Explanation / Answer
Answer:- lump-sum taxes are rarely used in the real world because
Correct Answer:- lump-sum taxes are often viewed as unfair because they take the same amount of money from both poor and rich
Reason:- An effective ax system should be based on income parity.
Answer:- vertical equity states that taxpayers with a greater ability to pay taxes should
Correct Answer:- contribute the larger amount than those with a lesser ability to pay
Reason:- In vertical parity higher income taxes are taken from high income groups.
Answer:- the most efficient tax possible is a
Correct Answer:- lump-sum tax.
Answer:- the benefits principle is used to justify
Correct Answer:- gasoline taxes
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