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zalisa [80]
1 year ago
15

Which of the following scenarios is consistent with the Laffer curve?

Business
1 answer:
sergejj [24]1 year ago
3 0

Answer:

No option is correct.

  • a. An increase in the tax rate always increases tax revenue. ⇒ FALSE, if tax rates increase beyond the optimal level, instead of increasing total revenue they will decrease it.
  • b. The tax rate is 1 percent, and tax revenue is very high.  ⇒ FALSE, very low tax rates will result in very low government revenue.
  • c. The tax rate is 99 percent, and tax revenue is very high.  ⇒ FALSE, very high tax rates will result in very low government revenue.
  • d. A decrease in the tax rate always increases tax revenue. ⇒ FALSE, if tax rates decrease beyond the optimal level, instead of increasing total revenue they will decrease it.

Explanation:

According to Arthur Laffer, a direct and sometimes inverse relationship exists between tax rates and government revenue. Sometimes a lower tax rate can result in higher government revenue. But that is not always the case. Sometimes an increase in the tax rate can increase government revenue. The optimal tax rate (T*) is equal to the tax rate that will allow the government to collect the highest amount of revenue. Any lower or higher tax rate will decrease government revenue.

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A(n) ______ does not work for either the employer or the employee. It acts as a go-between for employers looking to hire and emp
Anastaziya [24]

Answer:

An employment agency

Explanation:

An employment agency is a firm whose primary purpose is to connect employers and employees. The agency does not employ people but aims at placing them for employment in other organizations. The agency matches the job opening in organizations and available skills.  

In some countries, employment agencies can be government-owned or private businesses. Organizations that employ though agencies will save on time and recruitment costs.  

3 0
1 year ago
Banks that offer low interest rates to people with good credit
krek1111 [17]

The answer is: B. sacrifice profits for less risk.

Interest rates influence the amount of money that the borrower had to give back to the bank and  Higher interest rate would give higher profit for the bank.

When bank people give low interest rates for people with good credit, the number of revenue that bank would make from giving the loan would decrease. But people with good credit has high likelihood of returning the money they borrow, which mean that there is less risk for the bank.

3 0
1 year ago
Read 2 more answers
In 2009, Democratic President Barack Obama called on Congress to pass comprehensive health care reform. The goal of the legislat
stellarik [79]

Answer:

a. The party control of government when Congress passed legislation in 2014 to repeal the ACA was when Republicans gained majority seats in both chambers of Congress.  This Republican control of Congress was the catalyst for the repeal of the ACA in 2014.

b. The Republican representative who cast a vote in favor of the ACA bill in 2009 followed strictly his constituency mandate.

c. When President Obama vetoed the ACA repeal, the Republicans could proceed to court to try to use the judicial branch of government to implement their legislative goals by requesting for constitutional interpretation of the repealed bill.

If this had happened, it would have seriously hampered the implementation and success of the Affordable Care Act for partisan reasons.

Explanation:

a) Congress is the legislative arm of government that makes the law.  The executive implements the law.  The judiciary is in charge of the interpretation and application the law to real situations.  But when the President vetoes a bill, Congress can override the veto by ensuring that 2/3 of both chambers pass the law.  Alternatively, Congress can ask for a judicial interpretation.

7 0
1 year ago
Bressler’s would like to sell 600shares of stock using the Dutch auction method. The bids received are as follows: Bidder A will
drek231 [11]

Complete question:

Bressler’s would like to sell 600shares of stock using the Dutch auction method. The bids received are as follows:

Bidder         Quantity      Price $

    A                100             818

    B                 300            17

    C                400             16

   D                 700              15

The bids received are as follows: Bidder A will receive _____ shares and pay a price per share of ____.

Solution:

Bidder A's quantity = [600 /(100 + 300 + 400)] ×100

                                 = 75 shares

All successful bidders will pay $16 a share

The bids received are as follows:

Bidder A will receive 75 shares and pay a price per share of $16 .

A Dutch auction is a trading system (such as an initial open bid) whereby the stock price offered is reduced before appropriate offers are available for selling all shares. Each stock is then sold at that price.

3 0
1 year ago
Use the following information to answer question. Madelyn owns a small pottery factory. She can make 1,000 pieces of pottery per
notsponge [240]
Answer; a. $35,000.



sorry if wrong
4 0
1 year ago
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