The Excess Burden of a Tax

Multiple Choice

The excess burden of a tax

A) measures the efficiency loss to the economy that results from a tax, causing a reduction in the quantity of goods and services produced.
B) is measured by the administrative costs required to implement a tax system.
C) is a measure of the hardship imposed on low-income individuals in a society.
D) is a measure of the foregone consumption as a result of having to pay taxes.