According to the Laffer Curve, When the Tax Rate Is

question 71

Multiple Choice

According to the Laffer curve, when the tax rate is 100 percent, tax revenue will be:

• A) 0.
• B) at the maximum value.
• C) the same as it would be at a 50 percent tax rate.
• D) greater than it would be at a 50 percent tax rate.

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Definitions:

Export Restriction

Export restriction is a policy imposed by governments to limit or control the export of certain goods, services, or technology, often for political, economic, or environmental reasons.

Nontariff Barrier

Refers to any restriction, other than tariffs, that is used by countries to control the amount of trade across their borders, including quotas, embargoes, or regulations.

Trade Embargo

A government-imposed restriction on trade with a specific country or the exchange of specific goods.

Tariff

A tax imposed on imported goods to regulate trade by increasing the price of foreign products.