Question

question 10 1 pts answer the following questions about a lump - sum tax 1. in terms of the deadweight loss and administrative costs, a lump - sum tax would generally be less costly than a progressive tax. 2. in terms of equality and fairness of its impact on individuals with different income levels, a lump - sum tax would generally be select a progressive tax. select as fair/equal as more fair/equal than less fair/equal than

Explanation:

1. A lump - sum tax is a fixed amount tax regardless of income or other variables. It does not distort economic decisions much, resulting in lower deadweight loss. Also, its simple nature leads to lower administrative costs compared to a progressive tax which has different tax rates for different income levels and requires more record - keeping and calculation.
2. A progressive tax takes a larger percentage of income from high - income earners and a smaller percentage from low - income earners, which is considered more in line with the ability - to - pay principle. A lump - sum tax takes the same amount from everyone regardless of income, so it is less fair/equal in terms of the impact on different income levels.

Answer:

1. less costly than
2. less fair/equal than