(11) X firms produces and sells $1,100 worth of flowers. This firm uses no intermediate inputs. It pays its workers $700 in wages, pays $100 in taxes and pays $200 in interest on a loan. Its profit is

a)$100.

b)$200.

c)$400.

d)Non of the above

(12) According to the Laffer Curve

a)None of the below

b)lower tax rates always lead to higher tax revenue.

c)higher tax rates always lead to more tax revenue.

d)higher tax rates always lead to less tax revenue.