Taxes levied on broad bases tend to distort choice ________ and impose ________ excess burden than taxes on more sharply defined bases.

A) less; larger
B) less; smaller
C) more; larger
D) more; smaller

Excess Burden

Excess burden is the economic loss society incurs as a result of tax inefficiencies, beyond the tax itself, often due to distorted economic behaviors.

Economic Decisions

Choices made by individuals, households, or governments regarding allocation of resources and distribution of goods and services.