The Resources That a Taxpayer Devotes to Complying with the Tax

question 542

Multiple Choice

The resources that a taxpayer devotes to complying with the tax laws are a type of

• A)marginal tax.
• B)administrative burden.
• C)deadweight loss.
• D)Both b and c are correct.

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Definitions:

National Banks

National banks are financial institutions chartered by the federal government of a country, authorized to provide a variety of banking services, including accepting deposits, making loans, and issuing currency.

Interest-rate Ceilings

Regulatory limits placed on the maximum interest rates that can be charged on loans, intended to protect borrowers.

Bank Profits

The earnings generated by banks, derived from the difference between the interest paid on deposits and the interest received from loans.

FDIC

The Federal Deposit Insurance Corporation, a U.S. government agency that insures deposits at commercial banks and savings institutions.