An Efficient Tax System Is One That

question 500

Multiple Choice

An efficient tax system is one that
(i) maximizes tax revenues.
(ii) minimizes deadweight losses from taxes.
(iii) minimizes administrative burdens from taxes.
(iv) promotes equity across taxpayers.

• A)(i) only
• B)(ii) and (iii) only
• C)(i), (ii), and (iii) only
• D)(i), (ii), (iii), and (iv)

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Definitions:

Financial Account

The record of a country’s international transactions involving purchases or sales of financial and real assets.

Merchandise Trade Balance

The difference between a country's exports and imports of physical goods, indicating a trade surplus or deficit.

Refrigerators

Appliances used for keeping food and drinks cold, employing the principles of thermodynamics to transfer heat from the inside to the outside environment.

Shipping

The process of transporting goods and merchandise by land, air, or sea.