An efficient tax system is one that imposes small

A) deadweight losses and administrative burdens.
B) marginal rates and deadweight losses.
C) administrative burdens and transfers of money.
D) marginal rates and transfers of money.

Efficient Tax System

A tax system designed to collect government revenue with minimal economic distortion and without imposing excessive administration and compliance costs.

Deadweight Losses

Economic inefficiencies that occur when equilibrium in a market is not achieved, often due to government intervention like taxes or subsidies.

Administrative Burdens

The costs and obstacles associated with compliance to governmental policies and regulations.