Data from the Effects of the Substantial Tax Rate Reductions

question 90

Multiple Choice

Data from the effects of the substantial tax rate reductions in the 1980s

• A) cast serious doubt on the Laffer curve as a guide for tax policy.
• B) are consistent with the principles illustrated in the Laffer curve.
• C) generally reject the idea that lower tax rates can lead to higher tax revenue.
• D) support an "inverted Laffer curve" in which reducing tax rates for those with high incomes leads to lower tax revenue.

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Definitions:

Empirical Studies

Research based on observed and measured phenomena and derives knowledge from actual experience rather than from theory or belief.

Self-awareness

The awareness of one's own personality, emotions, motivations, and wishes.

Norms

Attitudinal and behavioural uniformities that define group membership and differentiate between groups.

Internalised

The process of incorporating beliefs, attitudes, or standards into one's own value system or behavior.