Refer to the Graph $R _ { 2 }$ , Supply-Side
Economists Would Strongly Advise the Government to Set

question 26

Multiple Choice

Refer to the graph. If the government wishes to collect tax revenues equal to R $R _ { 2 }$ , supply-side
Economists would strongly advise the government to set tax rates at

• A) \(T _ { 2 } \text { or } T _ { 3 }\)
• B) \(T _ { 2 } \text { only. }\)
• C) \(T _ { 4 } \text { only. }\)
• D) \(T _ { 2 } \text { or } T _ { 4 }\)

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Definitions:

Planter

A landowner who operates a plantation, especially in the historical context of the agricultural economies in the Southern United States, where cash crops like cotton and tobacco were prominent.

Indentured Servants

Laborers who agreed to work for a specified number of years in exchange for transportation to the New World and, once they arrived, food, accommodation, and eventual freedom.

English Migrants

Individuals who move from England to another country for permanent residence or long-term stay.

Chesapeake

A region around the Chesapeake Bay, mainly within Maryland and Virginia, known for its significant history in early American colonization and seafaring.