If an increase in marginal tax rates leads to an increase in tax revenues, then
a. the Laffer curve model of tax revenue is refuted.
b. supply-side economics is refuted.
c. the economy could be below the tax revenue maximizing tax rate.
d. we could be on the upward sloping portion of the Laffer curve.
D
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If the economy is at point 1 in Figure 13.1 and there is no policy intervention, what happens next?
A) the economy moves to point 2 B) the economy remains at point 1 C) the economy moves to the left along the AS curve D) the AS curve shifts down, causing both output and inflation to decline E) the AS curve shifts up, causing both output and inflation to rise
The purpose of a financial sector is ________
A) to minimize the payments firms make to state and local governments B) to maximize the payments firms make to state and local governments C) to channel funds away from households and firms with surplus funds D) to channel monies into socially acceptable causes
If a firm in an industry experiences very high fixed costs and constant marginal cost, it is a good candidate for a natural monopoly
Indicate whether the statement is true or false
Labor-market discrimination based solely on age is illegal in the United States
a. True b. False Indicate whether the statement is true or false