According to the Laffer curve, if the economy is on the positively sloped section of the curve, then
A. a decrease in the tax rate will increase tax revenue.
B. both an increase and a decrease in tax rates will increase tax revenue.
C. an increase in the tax rate will increase tax revenue.
D. both an increase and a decrease in tax rates will decrease tax revenues.
Answer: C
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Explain how a pollution tax is different from a Pigouvian tax. Discuss how incentives for firms differ under the two types of taxes, and what would be required of the government if it were to structure a Pigouvian tax system to mimic the effects of a pollution tax.
What will be an ideal response?
Which of the following goods is least likely to be in a market basket?
A. Shuttle service B. Airfare C. Streetlamps D. Coffee beans
According to the textbook, economics is a:
A) social science. B) study of business decisions, not social decisions. C) part of operations and management science. D) part of humanities.
Making the distribution of wealth ________ equal is ________
A) more; differences in degrees of specialization B) less; differences in degrees of specialization C) more; assortative mating D) less; assortative mating