According to the Laffer curve, when very low marginal tax rates are lowered, tax revenue will
A. decline.
B. stay the same.
C. increase.
A. decline.
You might also like to view...
Three possibilities have probabilities 0.4, 0.4 and 0.2 and values $10, $20, and $30 respectively. The expected value is:
a. $15 b. $16 c. $17 d. $18
A mortgage-backed security is a bundle of hundreds of mortgages which represents a claim on the monthly payments made on those mortgages
a. True b. False Indicate whether the statement is true or false
The rent earned on marginal land is
a. zero. b. the average of all qualities of land. c. above the average of all qualities of land. d. below the average of all qualities of land.
Price discrimination:
A. is more successful if resale of the product is possible from one consumer to another. B. can be a successful strategy for any firm in a competitive market C. tends to decrease the profits of the firm. D. can benefit consumers with a lower willingness to pay when compared to other consumers in the market