An efficient tax is one that raises the desired tax revenue but creates the least possible
A)total burden.
B)excess burden.
C)tax incidence.
D)tax shifting.

Question

Quizplus · Accepted Answer

Excess burden, also known as deadweight loss, is the loss of economic efficiency that occurs when a tax is imposed, beyond the revenue raised. An efficient tax would minimize excess burden while still raising the desired revenue. Therefore, the answer is B.

An Efficient Tax Is One That Raises the Desired Tax