Asked by Grace Hummel on May 18, 2024
Verified
The administrative burden of any tax system is part of the inefficiency it creates.
Administrative Burden
The costs associated with regulatory compliance, paperwork, and other bureaucratic procedures that organizations must bear.
Inefficiency
A situation where resources are not used in the most productive way, leading to waste or a loss of potential value in an economy or system.
- Understand the administrative burden and inefficiency associated with tax systems.
Verified Answer
LS
Laraib ShahidMay 22, 2024
Final Answer :
True
Explanation :
The administrative burden refers to the costs associated with managing and complying with the tax system, which contribute to its overall inefficiency by consuming resources that could be used more productively elsewhere.
Learning Objectives
- Understand the administrative burden and inefficiency associated with tax systems.
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