Consider the Laffer curve for a hypothetical good as displayed in the graph shown. 
Suppose the current tax rate is 45 percent. This implies that: the price effect currently outweighs the quantity effect.the government could increase revenue by lowering the tax rate.the current tax rate is efficient.
A) I only
B) II only
C) II and III only
D) I and II only
Correct Answer:
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Q58: In the real world, lump-sum taxes are:
A)often
Q59: The federal income tax _ than a
Q60: The federal income tax _ than a
Q61: If the _ effect is greater than
Q62: At lower tax rates the _ effect
Q64: When raising taxes, the quantity effect tells
Q65: Suppose the government is considering imposing a
Q66: If the price effect outweighs the quantity
Q67: Raising taxes:
A)always raises tax revenues.
B)always decreases tax
Q68: When raising taxes, the price effect tells
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