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

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

Excess Burden

The economic loss that society suffers due to market inefficiencies or taxes beyond the collected tax revenue.

Economic Decisions

Choices made by individuals, firms, or governments regarding the allocation of scarce resources to satisfy needs and desires.