The Laffer Curve Shows That as Tax Rates Increase

question 84

Multiple Choice

The Laffer curve shows that as tax rates increase

• A) initially tax revenues increase, then decrease.
• B) tax revenues decrease as the incidence of cheating on tax returns increases.
• C) tax revenues increase as more individuals and businesses have to pay taxes.
• D) tax revenues remain unchanged.

---

Definitions:

Dissimilar

Not alike or similar; differing in nature, form, or quality.

Gender Stereotyping

The practice of assigning roles, behaviors, activities, and attributes to individuals based strictly on their gender.

Major Increase

Signifies a significant or substantial rise in quantity, level, or intensity of a particular phenomenon or entity.

School Achievement

The measure of a student's academic progress and performance in an educational setting.