According to the Laffer curve, as tax rates increase tax revenue ?

Related Mcqs:

1. According to the Laffer curve as tax rates increase tax revenue ?

   A. initially increase and then decrease
   B. decrease continuously
   C. rise continuously
   D. initially decrease and then increase

2. Suppose that the supply curve of tin is highly inelastic. If the demand curve of tin decrease and increase cyclically along the supply curve of tin, then in this market the size of the quantity fluctuation will bathe size of the price fluctuations ?

   A. relatively greater than
   B. relatively less than
   C. the same as
   D. Any of the above

3. Suppose that the demand curve for tin is highly inelastic. If the supply curve of tin decrease and increase cyclically along the demand curve for tin then in this market the size of the price fluctuation will be __________ the size of the quantity fluctuations?

   A. relatively greater then
   B. relatively less than
   C. the same as
   D. any of the above

4. According to supply-side economists, as tax rates are reduced, labor supply should increase. This implies that ?

   A. there is no income effect when tax rates are changed
   B. the income effect of a wage change is greater than the substitution effect of a wage change.
   C. there is no substitution effect when tax rates are changed
   D. the substitution effect of a wage change is greater than the income effect of a wage change

5. The property tax wealth tax inheritance tax and income taxes such as persona and corporate taxes are ?

   A. indirect taxes
   B. direct taxes
   C. inelastic
   D. value-added tax

6. Imagine there is no tax on income up to Rs 1000 after that there is a tax of 505 what is the average tax rate on an income of Rs 20,000 ?

   A. Rs 50000
   B. 20%
   C. 25%
   D. Rs 10000

7. According to supply side economists as tax rates are reduced labour supply should increase. This implies that ?

   A. There is no income effect when tax rates are changed
   B. The income effect of a wage change is greater than the substitution effect of a wage change.
   C. There is no substitution effect when tax rates are changed
   D. The substitution effect of a wage change is greater than the income effect of a wage change

8. Refer to Exhibit 4. If a tax is placed on the product in this market tax revenue paid by the buyers is the area ?

   A. B + C + E + F
   B. B
   C. B + C
   D. A

9. Refer to Exhibit 4. If a tax is placed on the product in this market tax revenue paid by the sellers is the area ?

   A. C + F
   B. A
   C. B
   D. C

10. When a tax on a good start small and is gradually increased tax revenue ?

    A. will fall
    B. will rise
    C. will first rise and then fall
    D. will first fall and then rise