Which of the following is true? Apps M GmailHow to Bulld a $1..O YouTubeMapsReading List100BTax RevenueRefer to Figure 4-11. On the Laffer curve shown, which of the following is true?Select one:O a. Tax revenue would increase if marginal tax rates were lowered from pointC.Ob.Tax revenue would decrease if marginal tax rates were lowered from pointA.Tax revenues aretmaximized at a tax rate corresponding to point B.O d. All of the above are true.Clear my choiceWhen a government subsidy is granted to the buyers of a product, sellers can end upMaescF1F2F3F4F5#$12345Tax Rate (percent)

The tax revenue is the income of the government. The tax earned would result in the income for the…

Answered: Which of the following is true?

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter8: Application: The Costs Of Taxation

Section: Chapter Questions

Problem 3CQQ

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Similar questions

Economist Arthur Laffer famously pointed out that, in some cases, income tax revenue can actually go up when tax rates go down. Why might this be the case?
Imagine there is a tax on cigarettes and that consumers and producers each bear some portion of the tax. Assume that when vape pens were introduced, they were not taxed. How would you expect that introduction of vape pens to affect the distribution of the tax burden associated with the cigarette tax? O It will decrease the consumer tax burden because demand for cigarettes will become more elastic. O It will increase the consumer tax burden because demand for cigarettes will become more elastic. O It will decrease the consumer tax burden because demand for cigarettes will become more inelastic. O It will increase the consumer tax burden because demand for cigarettes will become more inelastic.
Calculate the average and marginal tax rates inthe following table, and indicate whether the taxis progressive, proportional, or regressive. Whatobservation can you make concerning the relationshipbetween marginal and average tax rates?
An increase in the excise taxes will shift thesupply on right side.Select one:e a. TrueOb. False
Suppose that the Philippine tax schedule given below is being implemented this year. (sorry, disregard the box) Tax Payment P 1,000 4,500 14,000 Annual Income P10,000 30,000 70,000 140,000 250,000 500,000 35,000 75,000 160,000
this question has not been graded i am trying to get help with it. it is a macroeconmics question
The U.S. income tax is currently O progressive O proportional O regressive O proactive a tax.
How does tax affect AE line? Draw graphs to explain
The Laffer curve illustrates the concept that a.an increase in marginal tax rates will always cause tax revenues to decrease. b.when marginal tax rates are quite high, a decrease in the tax rate may cause tax revenues to increase. c.when marginal taxes are quite low, an increase in the tax rate will probably cause tax revenues to decline. d.an increase in marginal tax rates will always cause tax revenues to increase.
The Federal Budget- Ask FRED The accompanying graph contains data on "U.S Individual Income Tax: Tax Rates for Regular Tax: Highest Bracket'" reproduced in the accompanying graph to analyze this aspect of the U.S. tax system_ over the past 100 vears. FREDU.S Individual Income Tax: Tax Rates for Regular Tax: Highest Bracket 100 90 80 70 60 50 a 40 30 20 10 0 1920 1940 1960 1980 2000 Source: U.S. Department of the Treasury. Internal Revenue Service a. When the income tax was first introduced, what was the rate on the highest bracket?
Identify whether each of the following taxes is progressive or regressive and indicate in each case where you think the tax incidence lies. d. The federal personal income tax is O proportional, and the incident is on the taxpayer. O average, and the incident is on the consumer. O progressive, and the incident is on the taxpayer. O regressive, and the incident is on the taxpayer. e. A 4 percent state general sales tax is O proportional, and the incident is on the consumer. O regressive, and the incident is on the consumer. O average, and the incident is on the consumer. O progressive, and the incident is on the taxpayer. f. A federal excise tax on automobile tires is O progressive, and the incident is on the taxpayer. O proportional, and the incident is on the consumer. O regressive, and the incident is on the consumer. O average, and the incident is on the consumer.
2

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