The government imposes taxes that do not depend on income is called.

Option 1 -> Lump-sum taxes are fixed amounts that don't vary with income or any economic activity.

Option 2 -> Direct taxes are levied directly on individuals/entities and often depend on income (e.g., income tax).

Option 3 -> Non-income taxes is a general term, not the specific economic terminology for fixed taxes.

Option 4 -> Indirect taxes are levied on goods and services, not a term for income-independent taxes.

Hence, Option 1: Lump-sum taxes -> A lump-sum tax is a fixed tax amount imposed on taxpayers regardless of their income level, economic activity, or any other variable. It remains constant whether someone earns $10,000 or$100,000. This type of tax is considered regressive in practice because it represents a larger percentage of income for lower-income individuals. In economic theory, lump-sum taxes are often discussed as they don't create distortions in economic behavior since they cannot be avoided by changing one's actions -> correct