Refer to the Graph $T _ { 2 } \text { to } T _ { 3 } \text { and increased tax revenues from } R _ { 2 } \text { to } R _ { 3 } \text {. }$

question 112

Multiple Choice

Refer to the graph. A movement from point C to point D on the Laffer Curve represents

• A) increased tax rates from \(T _ { 2 } \text { to } T _ { 3 } \text { and increased tax revenues from } R _ { 2 } \text { to } R _ { 3 } \text {. }\)
• B) decreased tax rates from \(T _ { 3 } \text { to } T _ { 2 } \text { and increased tax revenues from } R _ { 2 } \text { to } R _ { 3 } \text {. }\)
• C) decreased tax rates from \(T _ { 3 } \text { to } T _ { 2 } \text { and decreased tax revenues from } R _ { 3 } \text { to } R _ { 2 }\)
• D) increased tax rates from \(T _ { 2 } \text { to } T _ { 3 } \text { and decreased tax revenues from } R _ { 3 } \text { to } R _ { 2 }\)

---

Definitions:

Mere Exposure Effect

The Mere Exposure Effect is a psychological phenomenon by which people tend to develop a preference for things merely because they are familiar with them.

Alphabetical Order

A system of sorting according to the sequence of letters in the alphabet.

Self-Fulfilling Prophecy

A belief or expectation that directly or indirectly causes itself to become true, due to positive feedback between belief and behavior.

Bystander Effect

The bystander effect is a social psychological phenomenon in which individuals are less likely to offer help to a victim when other people are present, often due to a diffusion of responsibility.