Refer to the graph below. A movement from point C to point D on the Laffer Curve represents:
A. Increased tax rates from T2 to T3 and increased tax revenues from R2 to R3
B. Decreased tax rates from T3 to T2 and increased tax revenues from R2 to R3
C. Decreased tax rates from T3 to T2 and decreased tax revenues from R3 to R2
D. Increased tax rates from T2 to T3 and decreased tax revenues from R3 to R2
C. Decreased tax rates from T3 to T2 and decreased tax revenues from R3 to R2
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A general rule is that economy is experiencing a recession when:
a. real GDP declines for at least three months. b. real GDP declines for at least nine months. c. nominal GDP declines for at least nine months. d. real GDP declines for at least six months. e. nominal GDP declines for at least six months.
Which statement about oligopolies is true?
A. Most oligopolies in the U.S. engage in outright collusion. B. Most oligopolies operate at the minimum point of their ATC curves. C. Most of our GDP is produced by oligopolies. D. Collusion is illegal in the U.S. and does not exist.
The per se rule refers to the interpretation of the courts that dominant firms should be broken up because of their:
A. market share of dominance. B. history of illegal business practices. C. price discrimination practices. D. tying practices.
An industry with Herfindahl-Hershman Index of 10,000 would best be described as
A. oligopoly. B. perfect competition. C. monopolistic competition. D. monopoly.