A tax is efficient if it imposes a large excess burden relative to the tax revenue it raises.

Name: A tax is efficient if it imposes a large excess burden relative to the tax revenue it raises.
Brand: Quizplus
Rating: 4.7 (34 reviews)

Question

Quizplus · Accepted Answer

A tax is considered efficient if it raises sufficient revenue with minimal distortion to economic behavior, meaning that it does not impose a large excess burden. Therefore, the statement is false.

A Tax Is Efficient If It Imposes a Large Excess