Which of the Following Statements Regarding a Laffer Curve Is

question 163

Multiple Choice

Which of the following statements regarding a Laffer curve is the most plausible?

• A)Reducing a high tax rate is less likely to increase tax revenue than is reducing a low tax rate.
• B)Reducing a high tax rate is more likely to increase tax revenue than is reducing a low tax rate.
• C)Reducing a high tax rate will have the same effect on tax revenue as reducing a low tax rate.
• D)Reducing a tax rate can never increase tax revenue.

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Definitions:

Stimulus Generalization

The process in which a response that is originally elicited by a specific stimulus also becomes elicited by other, similar stimuli.

Conditioned Response

A learned reaction to a stimulus which occurs because of previous conditioning.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, leading to the increase or decrease of certain behaviors over time.

Extinction

In psychology, extinction refers to the gradual weakening and eventual disappearance of a learned response, often due to the absence of reinforcement that initially established the response.