One tax system is less efficient than another if it
A)places a lower tax burden on lower-income families than on higher-income families.
B)places a higher tax burden on lower-income families than on higher-income families.
C)raises the same amount of revenue at a higher cost to taxpayers.
D)raises less revenue at a lower cost to taxpayers.

Question

Quizplus · Accepted Answer

Efficiency in a tax system often refers to the cost of collecting taxes relative to the amount of revenue raised. A less efficient tax system is one that incurs a higher cost to raise the same amount of revenue, as indicated in option C.

One Tax System Is Less Efficient Than Another If It