Which of the Following Ideas Is the Most Plausible

question 15

Multiple Choice

Which of the following ideas is the most plausible?

• A)Reducing a high tax rate is less likely to increase tax revenue than is reducing a low tax rate.
• B)Reducing a high tax rate is more likely to increase tax revenue than is reducing a low tax rate.
• C)Reducing a high tax rate will have the same effect on tax revenue as reducing a low tax rate.
• D)Reducing a tax rate can never increase tax revenue.

Understand the dynamics of international trade relations and negotiations.

Understand the principles and benefits of international trade.

Grasp the concepts of absolute and comparative advantage and their application in international trade.

Analyze the effects of tariffs, quotas, and other trade barriers on global trade and domestic markets.