Which of the Following Statements Is Correct

question 14

Multiple Choice

Which of the following statements is correct?

• A)A decrease in the size of a tax always decreases the tax revenue raised by that tax.
• B)A decrease in the size of a tax always decreases the deadweight loss of that tax.
• C)Tax revenue decreases when there is a small decrease in the tax rate and the economy is on the downward-sloping part of the Laffer curve.
• D)An increase in the size of a tax leads to an increase in the deadweight loss of the tax only if the economy is on the upward-sloping part of the Laffer curve.

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Definitions:

Mature Female

Typically refers to an adult female organism that has reached reproductive age or capability.

Gametophyte

The sexual phase in the life cycle of plants and algae that produces gametes.

Gymnosperm

Type of woody seed plant in which the seeds are not enclosed by fruit and are usually borne in cones, such as those of the conifers.

Cycad

Type of gymnosperm with palmate leaves and massive cones; cycads are most often found in the tropics and subtropics.