A tax system _____ when it minimizes the direct and indirect costs to the economy of tax collection.

A) is efficient
B) is equitable
C) has no deadweight loss
D) is in equilibrium

Question

A tax system _____ when it minimizes the direct and indirect costs to the economy of tax collection.A) is efficientB) is equitableC) has no deadweight lossD) is in equilibrium

Arianna Herring · Accepted Answer

Final Answer : A, Explanation :  An efficient tax system minimizes the direct and indirect costs of tax collection, which reduces the deadweight loss and enhances economic growth. The other options may not necessarily relate to the efficiency of the tax system.

A tax system _____ when it minimizes the direct and indirect costs to the economy of tax collection.

A) is efficient
B) is equitable
C) has no deadweight loss
D) is in equilibrium

Definitions

Learning Objectives

Learning Objectives

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