The Relevant Objective in Designing a Tax System Is to

question 104

Multiple Choice

The relevant objective in designing a tax system is to

• A) raise the maximum possible revenue.
• B) eliminate all deadweight loss.
• C) design a system that raises the revenue required for the government's expenditure obligations.
• D) not intervene in the market economy because this only causes inefficiencies.
• E) design a system that minimizes inefficiency for a given amount of revenue raised.