An efficient tax system is one that
(i)maximizes tax revenues.
(ii)minimizes deadweight losses from taxes.
(iii)minimizes administrative burdens from taxes.
(iv)promotes equity across taxpayers.
A)(i) only
B)(ii) and (iii) only
C)(i), (ii), and (iii) only
D)(i), (ii), (iii), and (iv)

Question

Quizplus · Accepted Answer

An efficient tax system aims to minimize deadweight losses and administrative burdens, ensuring that the economic cost of taxation is as low as possible. Maximizing tax revenues and promoting equity are not directly related to efficiency.

An Efficient Tax System Is One That