One tax system is less efficient than another if it:
A)places a lower tax burden on lower income families than on higher income families
B)places a higher tax burden on lower income families than on higher income families
C)raises the same amount of revenue at a higher cost to taxpayers
D)raises the same amount of revenue at a lower cost to taxpayers

Question

Quizplus · Accepted Answer

A less efficient tax system raises the same amount of revenue but at a higher cost to taxpayers. Therefore, option C is the correct answer. Options A and B refer to the equity or fairness of the tax system, not its efficiency. Option D describes a more efficient tax system.

One Tax System Is Less Efficient Than Another If It