Which of the following is a characteristic of a more efficient tax system?
A)The system minimizes deadweight loss.
B)The system raises the same amount of revenue at a lower cost.
C)The system minimizes administrative burdens.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

A more efficient tax system is one that minimizes deadweight loss, raises revenue at a lower cost, and minimizes administrative burdens. When a tax system minimizes deadweight loss, it ensures that economic activity is not distorted, resulting in a loss of welfare. When a tax system raises the same amount of revenue at a lower cost, it implies that fewer resources are utilized in the collection of the tax revenue. Minimizing administrative burdens implies that the system is easy to understand, manage, and enforce, reducing the overall cost of the system.

Which of the Following Is a Characteristic of a More