When a Country Is on the Downward-Sloping Side of the Laffer

question 139

Multiple Choice

When a country is on the downward-sloping side of the Laffer curves, a cut in the tax rate will

• A)decrease tax revenue and decrease the deadweight loss.
• B)decrease tax revenue and increase the deadweight loss.
• C)increase tax revenue and decrease the deadweight loss.
• D)increase tax revenue and increase the deadweight loss.

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Definitions:

Chimpanzees

A species of great ape native to the forests and savannas of Africa, closely related to humans.

Colonialism

The act of gaining complete or partial political dominance over another nation, settling it with inhabitants, and using it for economic benefit.

Epidemics

Widespread occurrences of infectious diseases within a community or region over a specific period of time.