The Laffer Curve Indicates That Very High Rates of Taxation

question 46

True/False

The Laffer curve indicates that very high rates of taxation can actually reduce tax revenue.

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Definitions:

Apples

Edible fruits produced by an apple tree, characterized by their sweet taste and used in a wide variety of foods and drinks.

Indifference Curve

A graph showing a combination of two goods that give a consumer equal satisfaction and utility, thereby indicating the consumer's preferences.

Burgers

A type of sandwich consisting of one or more cooked patties of ground meat, usually beef, placed inside a sliced bread roll or bun.

Onion Rings

A type of fast food consisting of rings of onion dipped in batter and deep-fried.