A source of the deadweight loss of taxation is the inefficient use of tax revenue by the government.

Question

Quizplus · Accepted Answer

Deadweight loss of taxation primarily refers to the reduction in economic efficiency that occurs due to the distortion of market prices and quantities by a tax, leading to less trade and potentially altered behavior by consumers and producers, not the inefficient use of tax revenue by the government.

A Source of the Deadweight Loss of Taxation Is the Inefficient