Which of the Following Statements Is True

question 181

Multiple Choice

Which of the following statements is true?

• A) Tax revenues are maximized when the tax rate is 100%.
• B) Not knowing the economy's position on the Laffer curve means the effects of lowering tax rates are uncertain.
• C) Low marginal tax rates have disincentive effects on work effort.
• D) High marginal tax rates increase incentives to work.

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Definitions:

Diaphoretic

Pertaining to sweating, especially profuse sweating, as a medical symptom or bodily response.

Temperature Variation

Fluctuations in temperature over a certain period or across different locations.

Infection

Invasion of the body by pathogenic microorganisms that reproduce and multiply.

Brachial Artery

A major blood vessel of the upper arm that supplies blood to the arm and hand.