A tax system _____ when taxes are distributed fairly.

A) is efficient
B) is equitable
C) has no deadweight loss
D) is in equilibrium

An equitable tax system is one that distributes taxes fairly. This means that each person or entity is taxed in proportion to their ability to pay. An efficient tax system is one that is also easy to administer and doesn't create unnecessary bureaucracy. Deadweight loss is the inefficiency caused by taxes that result in a loss of economic activity. Equilibrium refers to a situation where supply and demand are balanced, and this does not necessarily relate to the fairness of taxation.