Use the Figure Below to Answer the Following Question(s)

question 89

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 4-10
-Refer to Figure 4-11. On the Laffer curve shown, tax revenue could be increased by

• A) decreasing the marginal tax rates if we were currently at point A.
• B) decreasing the marginal tax rates if we were currently at point C.
• C) increasing the marginal tax rates if we were currently at point B.
• D) increasing the marginal tax rates if we were currently at point C.

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Definitions:

Operating Segment

A component of a business that engages in business activities from which it may earn revenues and incur expenses, including segments with related products, services, or geographic areas.

Quick Assets

Liquid assets that can be rapidly converted into cash without significantly affecting their value, including cash, marketable securities, and receivables.

Current Receivables

Financial assets expected to be converted into cash within one year, including money owed by customers (accounts receivable).