In the above figure, the relationship between the tax rate and tax revenue is positive and becoming less steep between tax rates of
A) 0 percent and 30 percent.
B) 30 percent and 100 percent.
C) 0 percent and 100 percent.
D) None of the above answers are correct.
A
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What is the appropriate monetary policy response to a situation with deficient financial liquidity, when there is a liquidity trap?
A) an open market sale of government bonds B) a decrease in the interest rate on reserves C) an open market purchase of government bonds D) an increase in the interest rate on reserves
In the purely competitive case, marginal revenue (MR) is equal to:
a. cost b. profit c. price d. total revenue e. none of the above
When residential water users are charged a flat monthly rate for water, the marginal cost of an extra thousand gallons of water to a household is zero
a. True b. False
President Reagan was attracted to the theories expounded by the
a. classical school b. Keynesian school c. neo-Keynesian school d. rational expectations school e. supply-side school