According to the Laffer Curve
a) Tax revenue always increases as tax rates rise
b) Tax revenue always falls as tax rates rise
c) Tax revenue initially rises with the tax rate but when tax rates get too high revenue begins to fall
d) Tax revenue initially falls with the tax rate but when tax rates reach some optimal level revenue begins to rise
e) Tax revenue is unrelated to the tax rate
c) Tax revenue initially rises with the tax rate but when tax rates get too high revenue begins to fall
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The supply curve indicates the minimum quantity that a producer would be willing to supply at alternative prices
Indicate whether the statement is true or false
Economic growth is
A) an increase in the per person real production in a nation. B) an increase in stock market values. C) an increase in real estate values. D) an increase in the number of people employed in agriculture.
The demand for the product of a monopolistically competitive firm is highly elastic when
A) firms collude. B) there are fewer firms in the industry. C) there is a lot of product differentiation. D) there are a lot of close substitutes.
A firm's short-run marginal cost curve is decreasing when
A) marginal product is increasing. B) total fixed cost is decreasing. C) average fixed cost is increasing. D) marginal product is decreasing. E) capacity is reached.