Large Deadweight Losses and Large Administrative Burdens Are Characteristic of a Tax

question 50

Multiple Choice

Large deadweight losses and large administrative burdens are characteristic of a tax system that is best defined as:

• A)equitable
• B)bureaucratic
• C)revenue-maximising
• D)inefficient

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Definitions:

Units

A measurement for quantity, indicating the individual count or number of items, often used in production, inventory, and sales contexts.

Variable Cost

Costs that vary directly with the level of production or sales volume, such as raw materials and sales commissions.

Units

Basic quantitative measures for product or service output in business operations.

Sold

The finalization of a deal in which products or services are traded for money.