Refer to the graph below, which shows the market for beef where demand shifted from D1 and D2. The change in equilibrium from E1 to E2 cannot be a result of:
A. Buyers expectations of lower prices for beef in the very near future
B. An increase in the subsidy given to cattle farms
C. A widespread concern about mad-cow disease
D. A decrease in the productivity of cattle farms
D. A decrease in the productivity of cattle farms
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According to the Laffer curve, an increase in the tax rate will increase tax revenue
A. if the economy is on the positively sloped section of the curve. B. if the economy is on the negatively sloped section of the curve. C. no matter the location of the economy on the curve. D. if the economy is at the farthest point out on the curve.
If a government simplified its tax system the likeliest result would be a decrease in
a. consumer surplus. b. producer surplus. c. in deadweight loss. d. tax revenues.