If a Tax System Is Designed to Minimize the Sum

question 82

Multiple Choice

If a tax system is designed to minimize the sum of its deadweight loss and its administrative cost,its principal goal is:

• A)maximizing efficiency.
• B)maximizing equity.
• C)maximizing revenue.
• D)minimizing the tax burden.

---

Definitions:

Adequacy of Explanation

Refers to the extent to which an explanation sufficiently accounts for the evidence or reasons given, often evaluated in terms of completeness and clarity.

Framing

The way information is presented or phrased, which can significantly affect decisions and judgments by highlighting certain aspects over others.

Success Rate

A measure or percentage indicating the proportion of successes in a specific number of attempts or operations.

Failure Rate

A measure of the frequency at which an engineered system or component fails, expressed in failures per unit of time.