Which of the Following Statements Is Correct

question 14

Multiple Choice

Which of the following statements is correct?

• A)A decrease in the size of a tax always decreases the tax revenue raised by that tax.
• B)A decrease in the size of a tax always decreases the deadweight loss of that tax.
• C)Tax revenue decreases when there is a small decrease in the tax rate and the economy is on the downward-sloping part of the Laffer curve.
• D)An increase in the size of a tax leads to an increase in the deadweight loss of the tax only if the economy is on the upward-sloping part of the Laffer curve.

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Definitions:

External Intercostals

Muscles located between the ribs that aid in the process of inhalation by elevating the ribcage.

Rectus Abdominis

A paired muscle extending along the front of the abdomen that is important for posture and involved in flexing the spine.

Pulmonary Veins

The veins that carry oxygenated blood from the lungs back to the left atrium of the heart.

Bronchial Arteries

Arteries that provide oxygenated blood to the bronchi and connective tissue of the lungs.