The Laffer curve makes the point that cutting a very high marginal tax rate can __________ the tax base enough so that tax revenues __________

A) lower; rise
B) lower; fall
C) raise; rise
D) raise; fall


C

Economics

You might also like to view...

The difference between the amount of capital at the beginning of a year and the amount of capital at the end of the year is equal to

A) financial consumption. B) gross investment. C) depreciation. D) capital consumption. E) net investment.

Economics

Suppose that your income during Year X was $50,000 . and the CPI for Year X was 150 (base year = Z=100). Back in Year Z your income was $30,000 . Has your real income increased or decreased from Z to year X? By how much?

a. Increased by $5,000. b. Increased by $3,333. c. Unchanged. d. Decreased by $3,333. e. Decreased by $5,000.

Economics

W.L. Gore is structured an a U-form of organization

Indicate whether the statement is true or false

Economics

When consumers face rising gasoline prices, they typically

a. reduce their quantity demanded more in the long run than in the short run. b. reduce their quantity demanded more in the short run than in the long run. c. do not reduce their quantity demanded in the short run or the long run. d. increase their quantity demanded in the short run but reduce their quantity demanded in the long run.

Economics