Suppose the country of Mankiwland has a new king, King Gregory. For the purpose of efficiency King Gregory's chief economic advisor would encourage him to design his country's tax system to minimize
(i)deadweight losses from taxes.
(ii)administrative burdens from taxes.
(iii)the tax payments themselves.
(iv)government expenditures to correct for market failures.
A)(i) only
B)(i) and (ii) only
C)(iii) and (iv) only
D)(i), (ii), (iii), and (iv)

Question

Quizplus · Accepted Answer

The chief economic advisor would focus on minimizing deadweight losses and administrative burdens to create an efficient tax system, rather than minimizing tax payments or government expenditures.

Suppose the Country of Mankiwland Has a New King, King