The Laffer curve illustrates the concept that
a. an increase in marginal tax rates will always cause tax revenues to increase.
b. an increase in marginal tax rates will always cause tax revenues to decrease.
c. when marginal tax rates are quite high, a decrease in the tax rate may cause tax revenues to increase.
d. when marginal taxes are quite low, an increase in the tax rate will probably cause tax revenues to decline.
C
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The marginal product of labor measures: a. the total amount of output produced by all workers combined
b. the quantity of an intermediate product that is combined with labor to produce output. c. the amount of output an additional worker contributes to a firm's total output. d. the average productivity of workers hired by a firm.
Indifference curves are steeper on the right and flatter on the left
a. True b. False Indicate whether the statement is true or false
In the real world, price discrimination is more difficult because:
A. to perfectly discriminate, the firm must read people's minds to know their willingness to pay. B. it is difficult to identify and verify different groups. C. it can be challenging to prevent the resale of goods from one group to another. D. All of these statements are true.
The marginal revenue product of labor is the:
A. change in labor necessary to produce an additional unit of output. B. cost of additional labor necessary to produce an additional unit of output. C. change in output resulting from adding an additional unit of labor. D. change in revenue resulting from adding an additional unit of labor.