The Above Diagram Describes the Notion That as Tax

question 89

Multiple Choice

The above diagram describes the notion that as tax:

• A)revenues increase from zero to 100 percent, tax rates will increase from zero to some maximum level and then decline to zero.
• B)rates increase from zero to 100 percent, tax revenue will increase from zero to some maximum level and decline to zero.
• C)rates decrease from 100 to zero percent, tax revenue will decrease from 100 percent to a maximum level.
• D)rates increase from zero to 100 percent, tax revenue will increase from zero to a maximum level.

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Definitions:

Mediation

A conflict resolution process involving a neutral third-party who helps disputing parties find a mutually acceptable solution without making decisions for them.

Railway Labor Act

A U.S. federal law originally passed in 1926 that governs labor relations in the railway and airline industries.

Med-arb

A hybrid dispute resolution process combining mediation and arbitration where unresolved issues in the mediation phase are arbitrated.

Chilling Effect

A situation where speech or conduct is suppressed by fear of penalization at the interests of those who have the power to penalize.