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Refer to the Graph Above

Question 10

Multiple Choice

Refer to the graph above. A movement from point C to point D on the Laffer Curve represents: A) Increased tax rates from T<sub>2</sub> to T<sub>3</sub> and increased tax revenues from R<sub>2</sub> to R<sub>3</sub> B) Decreased tax rates from T<sub>3</sub> to T<sub>2</sub> and increased tax revenues from R<sub>2</sub> to R<sub>3</sub> C) Decreased tax rates from T<sub>3</sub> to T<sub>2</sub> and decreased tax revenues from R<sub>3</sub> to R<sub>2</sub> D) Increased tax rates from T<sub>2</sub> to T<sub>3</sub> and decreased tax revenues from R<sub>3</sub> to R<sub>2</sub> Refer to the graph above. A movement from point C to point D on the Laffer Curve represents:


A) Increased tax rates from T2 to T3 and increased tax revenues from R2 to R3
B) Decreased tax rates from T3 to T2 and increased tax revenues from R2 to R3
C) Decreased tax rates from T3 to T2 and decreased tax revenues from R3 to R2
D) Increased tax rates from T2 to T3 and decreased tax revenues from R3 to R2

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