Correct option is C
The Laffer curve illustrates the relationship between tax rates and government revenue. It shows that there is an optimal tax rate that maximizes government revenue. At both extremes—100% tax and 0% tax—government revenue is zero.
The curve suggests that if tax rates are too high, people may be discouraged from working or investing, leading to reduced economic activity and, therefore, lower tax revenues. Conversely, if tax rates are too low, the government collects insufficient revenue. The optimal point is somewhere in the middle.
Lorenz curve is used to represent income inequality.
Phillips curve shows the inverse relationship between inflation and unemployment.
Griffith curve does not relate to this context.
