If a tax system is designed to minimize the sum of its deadweight loss and its administrative cost,its principal goal is:

Question

Quizplus · Accepted Answer

Minimizing the sum of deadweight loss and administrative cost would result in a more efficient tax system, where resources are not wasted and the economy is not distorted by excessive taxation or inefficient administration. Maximizing equity or revenue or minimizing the tax burden may not necessarily lead to the most efficient tax system.

If a Tax System Is Designed to Minimize the Sum