$$\begin{array} { | c | c | }
\hline \text { Average Tax Rate } & \text { Tax Revenue } ( \$ B ) \
\hline 20 \% & \$ 250 \
\hline 40 & 300 \
\hline 60 & 250 \
\hline 80 & 200 \
\hline
\end{array}$$ If graphed, the relationship shown would depict this economy's
A) Laffer Curve.
B) Lorenz Curve.
C) Tax Freedom Curve.
D) Phillips Curve.

Question

$$\begin{array} { | c | c | } 
\hline \text { Average Tax Rate } & \text { Tax Revenue } ( \$ B ) \
\hline 20 \% & \$ 250 \
\hline 40 & 300 \
\hline 60 & 250 \
\hline 80 & 200 \
\hline
\end{array}$$ If graphed, the relationship shown would depict this economy's
A) Laffer Curve.
B) Lorenz Curve.
C) Tax Freedom Curve.
D) Phillips Curve.

Quizplus · Accepted Answer

The given data shows the relationship between the average tax rate and tax revenue, which can be used to create a Laffer Curve. The Laffer Curve depicts the relationship between tax rates and tax revenue, and shows that at low and high tax rates, the government may not collect as much revenue as it would at a more moderate tax rate.

If Graphed, the Relationship Shown Would Depict This Economy's A)

If Graphed, the Relationship Shown Would Depict This Economy's
A)