Refer to the Graph Above

question 6

Multiple Choice

Refer to the graph above. If tax rates are between b and d, then supply-side economists are of the opinion that a(n) :

• A) Increase in tax revenues will increase tax rates
• B) Decrease in tax rates will increase tax revenues
• C) Increase in tax rates will increase tax revenues
• D) Decrease in tax revenues will decrease tax rates

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Definitions:

Polygyny

A type of matrimonial arrangement where a man can concurrently have multiple wives.

Polygamy

A marital practice in which an individual has more than one spouse simultaneously, recognized in some cultures and religions.

Breadwinners

Persons who earn the primary source of income for a household, supporting the family's financial needs.

Family

An intimate group of two or more people who (1) live together in a committed relationship, (2) care for one another and any children, and (3) share activities and close emotional ties.