Multiple choice

Laffer curve is related to -

  1. Tax collection

  2. Employment

  3. Consumption

  4. National Income
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A Correct answer
Explanation

The Laffer Curve is an economic theory that illustrates the relationship between tax rates and tax revenue. It shows that increasing tax rates beyond a certain point can be counterproductive as it discourages economic activity and reduces tax revenue. It's a fundamental concept in supply-side economics and tax policy.

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