-Refer to Exhibit 11-2.Compare points A and B.Which of the following is true?
A) At A and B,the tax rates are the same,but tax revenues are different.
B) At A tax rates are higher than at B,but tax revenues are the same at both points.
C) At B tax rates are higher than at A,but tax revenues are the same at both points.
D) none of the above

Question

-Refer to Exhibit 11-2.Compare points A and B.Which of the following is true?
A) At A and B,the tax rates are the same,but tax revenues are different. 
B) At A tax rates are higher than at B,but tax revenues are the same at both points. 
C) At B tax rates are higher than at A,but tax revenues are the same at both points. 
D) none of the above

Quizplus · Accepted Answer

At point B, tax rates are higher than at point A, but the tax revenues are the same at both points, indicating a scenario consistent with the Laffer Curve where different tax rates can yield the same revenue.