U.S. data suggest that the U.S. economy is located where on the Laffer curve?
A) On the right side, after the peak in tax revenue.
B) On the left side, before the peak in tax revenue.
C) At the peak in tax revenue.
D) The economy was on the right side before the 1980s and on the left side after 1980.
B
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Which branch of study helps in economic decision making when an individual's behavior determines the payoffs to others?
A) Microeconomics B) Macroeconomics C) Game theory D) Public economics
Suppose Congress passes a law that states the price of gasoline may not exceed $6 per gallon (but may be lower)
If the current price of gasoline is less than $6, what impact does this law have on the current price and quantity of gasoline in the US market? A) There is a shortage of gasoline B) There is a surplus of gasoline C) Quantity supplied currently equals quantity demanded, but a surplus is possible at prices above $6 D) The law currently has no impact, and the market clears at the equilibrium price