Country A's tax system is more efficient than Country B's tax system if
A)Country A collects less tax revenue than Country B, and the cost to taxpayers is the same in both countries.
B)Country A collects more tax revenue than Country B, even though the cost to taxpayers is greater in Country A than in Country B.
C)the same amount of revenue is raised in both countries, but the cost to taxpayers is smaller in Country A than in Country B.
D)the same amount of revenue is raised in both countries, but the taxes are collected in a shorter amount of time in Country A than in Country B.

Question

Quizplus · Accepted Answer

Efficiency in a tax system is not just about collecting more revenue, but also about the cost to taxpayers. If Country A can collect the same amount of revenue as Country B, but with a lower cost to taxpayers, then it is considered more efficient. This means that taxpayers in Country A are able to keep more of their income and have less of a burden from taxes, while still contributing the same amount to the government.

Country A's Tax System Is More Efficient Than Country B's