Laffer curve is the curve showing how tax revenue varies

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Reference no: EM13853873

1. Total surplus in a market does not change when the government imposes a tax on that market because the loss of consumer surplus and producer surplus is equal to the gain of government revenue.

a. True

b. False

2. The Laffer curve is the curve showing how tax revenue varies as the size of the tax varies.

a. True

b. False

Reference no: EM13853873

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