The Laffer Curve Makes the Point That Cutting a Very

question 100

Multiple Choice

The Laffer curve makes the point that cutting a very high marginal tax rate can __________ the tax base enough so that tax revenues __________.

• A) lower; rise
• B) lower; fall
• C) raise; rise
• D) raise; fall

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Definitions:

Power Differences

The variations in authority, influence, or strength between individuals or groups within a social or organizational context.

Prejudice

A preconceived opinion or judgment about someone or something that is not based on reason or actual experience; often involves negative attitudes or discrimination.

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Group Work

The collaborative effort of individuals working together in a group to complete tasks, solve problems, or achieve common goals.