Question

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 select a progressive tax. 2. in terms of equality income levels, a lump select individuals with different

Explanation:

1. A lump - sum tax is a fixed - amount tax regardless of income or consumption levels. It does not distort economic decisions as much as a progressive tax, so it has lower deadweight loss and generally lower administrative costs.
2. A lump - sum tax takes the same amount from everyone, regardless of income. For low - income individuals, this is a larger proportion of their income compared to high - income individuals, so in terms of equality among different income levels, it is more costly for low - income earners compared to a progressive tax which takes a larger proportion from high - income earners.

Answer:

1. less costly than
2. more costly than