Economists consider the most efficient tax to be O Progressive tax O Pigouvian tax Income tax...

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Economists consider the most efficient tax to be O Progressive tax O Pigouvian tax Income tax O Alump-sum tax

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Answer 1

Answer #1

2):-D is right option lump- sum tax is right option.

lump-sum tax is defined as tax that is the same amount for every person

•MTR = 0. ATR = taxes paid/income = lump sum/income. Everyones ATR is a different %.

•It is The most efficient tax because it doesn't distort incentives, has minimal administrative burdens, but lump-taxes aren't equitable.

•It is very efficient . it doesn't note reduce the incentive to work because it doesn't vary with people income

•Under this tax administrative burden is very low.

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Answer 2

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