At tax rates higher than the tax rate that maximizes tax revenues along a Laffer curve
A. a reduction in tax rates increases tax revenues.
B. a reduction in tax rates reduces tax revenues.
C. an increase in tax rates increases tax revenues.
D. any variation in tax rates has no effect on tax revenues.
Answer: A
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The two principle methods of measuring Gross Domestic Product are the
A. expenditures approach and the income approach. B. domestic approach and the international approach. C. intermediate approach and the value-added approach. D. flow approach and the stock approach.
What happens to the marginal cost curve when the marginal physical product of labor is rising?
A. It becomes vertical. B. It becomes downward sloping. C. It becomes horizontal. D. It becomes upward sloping.
In the classical view of the labor market, it is implied that unemployment does not exist.
Answer the following statement true (T) or false (F)
If a firm raises funds by recruiting additional owners to invest in the firm,
A) the firm's stock price would decrease. B) the firm's financial capital would increase. C) the firm's financial capital would decrease. D) the firm's net worth would decrease.