A Laffer Curve

Multiple Choice

A Laffer curve

A) relates the marginal tax rate to the average tax rate.
B) relates the government's total income-tax revenue to the average rate across all taxes.
C) relates the government's sales-tax yield to the marginal tax rate.
D) shows that,for any tax,tax revenues reach a maximum at some tax rate below 100%.
E) shows that tax revenues reach a maximum when the marginal tax rate is zero.