-In the above figure, the relationship between the tax rate and tax revenue is positive and becoming less steep between tax rates of

Question

Quizplus · Accepted Answer

The relationship between the tax rate and tax revenue being positive and becoming less steep between tax rates of 0 per cent and 30 per cent suggests that as the tax rate increases from 0 to 30 per cent, tax revenue also increases but at a decreasing rate. This indicates a diminishing marginal return on tax revenue as the tax rate increases within this range.

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