The Laffer curve shows as tax rates rise, tax revenue:
A. rises.
B. first rises, then falls, and then rises again.
C. falls.
D. first rises, and then falls.
Answer: D
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The purchasing power parity theory helps explain long-run trends in exchange rates, but not short-run fluctuations
a. True b. False
The market system provides a way
a. to allow specialization and exchange to work in tandem. b. to improve the well-being of mankind. c. to harness self-interest. d. to allocate goods and services. e. All of the above are correct.
What is the percentage of income received by the upper quintiles on line L?
The two ways of measuring Gross Domestic Product are the __________ approach and the __________ approach
A) expenditure; income B) expenditure; national product C) national product; income D) net national product; personal income