According to the Laffer Curve

question 91

Multiple Choice

According to the Laffer curve,

• A) an increase in tax rates will always cause tax revenues to increase.
• B) when marginal tax rates are high, an increase in tax rates is likely to cause tax revenues to increase.
• C) when marginal taxes are low, an increase in tax rates will probably cause tax revenues to decline.
• D) when marginal tax rates are high, a reduction in tax rates may increase tax revenue.

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Definitions:

Job Characteristics Model

A theory that proposes five core job dimensions, leading to high job satisfaction, motivation, and performance.

Visible Outcome

A result or effect that is easily seen, noticed, or observed.

Herzberg's Model

A theory of motivation that divides factors into motivators, which can increase job satisfaction, and hygiene factors, which can prevent dissatisfaction.

Motivated

The internal drive or condition that prompts an individual to act or behave in a particular way towards achieving certain goals or fulfilling needs.