The figure above shows the market for tires. The figure shows that the government has imposed a tax of ________ per tire and that ________ pay most of the tax

The Laffer curve illustrates that

A) high tax rates could lead to lower tax revenues if economic activity is severely discouraged. B) lowering tax rates will always decrease tax revenues. C) lowering tax rates will always increase tax revenues. D) high tax rates would increase tax revenue and increase the labor supply as people work harder to maintain their standard of living.

The problem of scarcity is confronted by:

A) industrialized societies. B) pre-industrialized societies. C) societies governed by communist philosophies. D) all societies.