A Tax System with Little Deadweight Loss and a Small

question 506

Multiple Choice

A tax system with little deadweight loss and a small administrative burden would be described as

• A)equitable.
• B)communistic.
• C)capitalistic.
• D)efficient.

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Definitions:

High-Opportunity Cost

A situation where choosing one option results in the loss of the potential gain from other alternatives.

Low-Opportunity Cost

Refers to a situation where choosing one option results in the smallest possible sacrifice in terms of the value of the next best alternative.

Appreciates

When the value of an asset or currency increases in value in comparison to another currency or benchmark.

Non-Free Trade

Trade practices where governments impose tariffs, quotas, or regulations to restrict the free flow of goods and services between countries.