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

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Quizplus · Accepted Answer

Large deadweight losses and administrative burdens are indicative of inefficiency in a tax system. Deadweight loss refers to the loss of economic efficiency that occurs when the tax causes people to alter their behavior in order to avoid the tax or reduce its impact. Administrative burdens refer to the time, effort, and expense that taxpayers incur in order to comply with the tax system. An efficient tax system should aim to minimize deadweight losses and administrative burdens.

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