According to the Laffer curve, as tax rates increase, tax revenues
A. rise continuously.
B. decrease continuously.
C. initially increase and then decrease.
D. initially decrease and then increase.
Answer: C
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American consumers learn that grape consumption can reduce the incidence of heart disease. Everything else being equal, this will cause the
A. price of grapes to fall and decrease the quantity supplied. B. supply of grapes to fall and the quantity demanded to increase. C. quantity supplied of grapes to fall. D. demand curve for grapes to shift to the right and increase the quantity supplied.
Suppose someone offered to give you $1,000,000 five years in the future and the anticipated interest rate is 5 percent. The present value of this offer would be worth approximately
A) $784,000. B) $500,000. C) $1,050,000. D) $286,000.
In order to not face tradeoffs, scarcity would have to be eliminated
a. True b. False Indicate whether the statement is true or false
Moral hazard:
A. is about the unobserved actions of people. B. is about the unobserved characteristics of people. C. occurs before the parties have entered into an agreement. D. None of these statements is true.