-In the above figure, the relationship between the tax rate and tax revenue is positive and becoming less steep between tax rates of
A) 0 percent and 100 percent.
B) 0 percent and 30 percent.
C) 30 percent and 100 percent.
D) None of the above answers are correct.

Question

-In the above figure, the relationship between the tax rate and tax revenue is positive and becoming less steep between tax rates of
A) 0 percent and 100 percent. 
B) 0 percent and 30 percent. 
C) 30 percent and 100 percent. 
D) None of the above answers are correct.

Quizplus · Accepted Answer

The relationship between the tax rate and tax revenue is positive and becomes less steep between 0 percent and 30 percent, indicating diminishing returns as the tax rate increases within this range.

-In the Above Figure, the Relationship Between the Tax Rate