The Laffer Curve Indicates That

question 253

Multiple Choice

The Laffer curve indicates that

• A) when tax rates are low, a decrease in tax rates is likely to increase tax revenues.
• B) when tax rates are high, an increase in tax rates is likely to a decrease in tax revenues.
• C) tax revenue will always increase when tax rates are increased.
• D) tax revenue will always decrease when tax rates are lowered.

---

Definitions:

Primary Circular Reactions

The repetition of actions that first occurred by chance and that focus on the infant’s own body.

External Environment

All outside factors and influences that affect the development, behavior, and survival of an organism or organization.

Angular Gyrus

A region of the brain located in the parietal lobe that is involved in processing language, numbers, and spatial cognition, among other functions.

Visual Information

Data that is perceived or interpreted through the sense of sight, including images, symbols, and visual cues.