🤑ap microeconomics review

Lump-sum taxes

Written by the Fiveable Content Team • Last updated August 2025
Verified for the 2027 exam
Verified for the 2027 examWritten by the Fiveable Content Team • Last updated August 2025

Definition

A fixed tax amount that does not vary with quantity produced or consumed, affecting only fixed costs and not marginal cost or marginal benefit.

AP course connection

Topic 6.4: 6.4 The Effects of Government Intervention in Different Market Structures

Unit 6

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