Which of the Following Scenarios Is Consistent with the Laffer

question 32

Multiple Choice

Which of the following scenarios is consistent with the Laffer curve?

• A)The tax rate is 1 percent,and tax revenue is very low.
• B)The tax rate is 1 percent,and tax revenue is very high.
• C)The tax rate is 99 percent,and tax revenue is very high.
• D)The tax rate is moderate (between very high and very low),and tax revenue is very low.

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Definitions:

David

A masterpiece of Renaissance sculpture created by Michelangelo from 1501-1504, representing the Biblical hero David in marble.

Di Sotto In Sù

An Italian artistic term referring to a perspective illusion in ceiling or fresco painting, making the scene appear to extend upwards from the actual ceiling.

Quadro Riportato

A ceiling design in which painted scenes are arranged in panels that resemble framed pictures transferred to the surface of a shallow, curved vault.

Trompe L'oeil

A painting technique that uses realistic imagery to create the optical illusion that depicted objects exist in three dimensions.