Economics (AS & A Level) · Oct / Nov 2023 · Paper 31 · Question 24
9708Effectiveness of policy options to meet all macroeconomic objectives
The Laffer curve shows expected tax revenues at different tax rates. An increase in the tax rate above 50% is expected to decrease tax revenue. What is the reason for this?
- Adecreased incentive for emigration
- Bdecreased incentive for tax evasion
- Cincreased incentive for people to work
- Dincreased incentive for people to work fewer hours
As printed in the paper
Show the answer
Correct answer: D. increased incentive for people to work fewer hours
Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.