Asked by Aparna Narayanan on Jun 05, 2024
Verified
Resources devoted to complying with the tax laws are a type of deadweight loss.
Deadweight Loss
The loss of economic efficiency that occurs when the equilibrium for a good or a service is not achieved or is unattainable, leading to misallocation of resources.
Tax Laws
Regulations governing how taxes are assessed, collected, and managed by government entities, including income, corporate, sales, and property taxes.
- Comprehend the role of administrative costs and deadweight losses in the functioning of tax systems.
Verified Answer
SW
Stephen WagnerJun 09, 2024
Final Answer :
True
Explanation :
These resources do not contribute to economic productivity but are instead used to navigate the complexities of the tax system, representing a loss of efficiency in the economy.
Learning Objectives
- Comprehend the role of administrative costs and deadweight losses in the functioning of tax systems.
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