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Which of the Following Best Describes the Case When Taxes

Question 136

Multiple Choice

Which of the following best describes the case when taxes can be justified?


A) Used by the government to clean up negative externalities and provide goods with positive externalities.
B) Used by the government only to clean up negative externalities such as water pollution.
C) Used by the government only to provide goods with positive externalities such as medical research.
D) Used by the government to provide public goods such as national defense.

Correct Answer:

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