Bissoy.com
Doctors Medicines MCQs Q&A

The Laffer curve is the graphical representation of?

The Laffer curve is the graphical representation of? Correct Answer The relationship between tax rates and absolute revenue these rates generate for the government

The correct answer is Option 2.

  • The Laffer Curve describes the relationship between tax rates and total tax revenue, with an optimal tax rate that maximizes total government tax revenue.
  • If taxes are too high along the Laffer Curve, then they will discourage the taxed activities, such as work and investment, enough to actually reduce total tax revenue.
  • In this case, cutting tax rates will both stimulate economic incentives and increase tax revenue.
  • The Laffer Curve was used as a basis for tax cuts in the 1980's with apparent success, but criticized on practical grounds on the basis of its simplistic assumptions, and on economic grounds that increasing government revenue might not always be optimal.

Related Questions

The MC curve reaches its minimum point before the AVC curve and the AC curve. In addition the MC curve intersects the AVC curve and the AC curve at their lowest point. The above statements are both true
The Laffer Curve is a relationship between
The Laffer Curve describes the relationship between 
According to the Laffer curve, tax collection increases to the maximum rate of revenue at which of the following situations?
Which among the following is the best related with the “Laffer curve”?
Match the following:   Curve   Nature of damping I Curve (a) A Un - Damped II Curve (b) B Over Damped III Curve (c) C Under Damped IV Curve (d) D Critically Damped
The question below consists of a set of labelled sentences. Out of the four options given, select the most logical order of the sentences to form acoherent paragraph.
P- The magnitude of the interdependence depends on the technique of production causing the shifts in the food supply curve.
Q- Interdependence of food and labour market is important for the development process.
R- Similarly, an upward shift in the food supply curve shifts up the food demand curve.
S- An upward shift in the food supply curve would simultaneously result in an upward shift in the labour demand curve.
From an alloy, two specimens are machined and tested separately under tension and compression. The engineering stress-strain curves as well as the true stress-true strain curves for tension and compression are plotted in the same diagram. Identify the correct statements:
P. The engineering stress-strain curves in tension and compression are identical.
Q. The true stress-true strain curve in compression is lower than the true stresstrue strain curve in tension due to Bauschinger effect.
R. The true stress-true strain curve in tension is above the corresponding engineering stress-strain, curve.
S. The true stress-true strain curve in tension and compression are identical.
The flow-mass curve is graphical representation of
Which of the following is a form of representation in a representative democracy? I. Territorial Representation II. functional representation