
Influence of taxes on the efficiency of resource use.

Explanation of Solution
The tax will reduce the efficiency because taxes are the burden imposed by the government on its citizens on the consumption of goods and services. If the burden is imposed on the society as tax, it will lead to problems such as compliance cost and dead weight loss. The compliance cost arises due to the cost of collecting tax. The dead weight loss arises due to the imposition of tax, which reduces the producer and
Dead weight loss: Dead weight loss is a loss of economic efficiency that arises due to the allocative inefficiency when the goods and services are unable to achieve the
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