Asked by Edith Anderson on May 19, 2024
Verified
If the government imposes a tax of $3,000 on everyone, the tax would be
A) an income tax.
B) a consumption tax.
C) a lump-sum tax.
D) a marginal tax.
Lump-Sum Tax
A tax that is of a fixed amount and does not vary with the taxpayer’s income level or asset value.
Consumption Tax
A levy imposed on the acquisition of goods and services, charged at the time of purchase.
Income Tax
A charge imposed by authorities on the earnings of individuals and enterprises operating within their territory.
- Identify the types of taxes and their characteristics.
Verified Answer
LS
Lyndsey SprattMay 25, 2024
Final Answer :
C
Explanation :
A lump-sum tax is a fixed amount of tax that individuals are required to pay, regardless of their income, consumption, or any other factors. It does not change with the taxpayer's income level or economic activity, making option C the correct answer.
Learning Objectives
- Identify the types of taxes and their characteristics.