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.

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Definitions:

Social Conditions

The environmental, cultural and economic factors that influence the lives and opportunities of those within a society.

Life Expectancy

The average period that an individual is expected to live, based on statistical analysis, which can vary by geographical location, era, and other social factors.

Sociology of Medicine

A sub-discipline of sociology that examines the social dimensions of health, illness, and healthcare, including the role of medical institutions and the interactions among patients, healthcare providers, and society.

Life Expectancy

The average number of years that a person is expected to live, based on statistical averages.