The Graph Describes the Notion That as Tax Rates Rise

question 82

Multiple Choice

The graph describes the notion that as tax rates rise from zero percent, tax revenues will

• A) increase at first, but then decline eventually as tax rates continue rising.
• B) decrease at first, but then increase eventually as tax rates continue rising.
• C) rise higher and higher.
• D) fall lower and lower until they shrink to zero.

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Definitions:

Execution

The carrying out of a court order or judgment, or the process of putting a plan, order, or course of action into effect.

Pretermitted

In the law of wills, an heir born after the execution of the testator’s will.

Testator's Will

The legal document through which a person (the testator) expresses their wishes as to how their property is to be distributed after death.

Attorney-In-Fact

An agent who is given express, written authorization by his principal to do a particular act or series of acts on behalf of the principal.