Economist Arthur Laffer, Who Developed the Laffer Curve, Believed That

question 45

Multiple Choice

Economist Arthur Laffer, who developed the Laffer curve, believed that if taxes are raised drastically:

• A) people will work less because too much of their income will go to the government.
• B) people will work more because they need to offset money going to the government.
• C) people will demand more from government for their hard work, making government bigger and even more expensive.
• D) more people will become unemployed and collect unemployment benefits.
• E) the government would raise less money over time and ultimately go bankrupt because educated and skilled workers would leave the country for better opportunities elsewhere.

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Definitions:

Zygospore-Forming

Refers to a mode of sexual reproduction in some fungi where a zygospore, a thick-walled spore, is formed by the fusion of two haploid cells.

Bread Mold

A type of fungus that grows and feeds on bread, belonging to the Rhizopus species.

Water Mold

A class of microorganisms that are similar to fungi, thriving in wet environments and causing diseases in plants and animals.

Reproduce Asexually

A mode of reproduction involving a single parent that results in offspring genetically identical to the parent, without the fusion of gametes.