Taxes can be justified if the government uses the revenue to
(i) provide public goods such as national defense.
(ii) clean up negative externalities such as water pollution.
(iii) regulate a common resource such as fish in a public lake.
(iv) provide goods with positive externalities such as medical research.
A) (ii) only
B) (ii) and (iii) only
C) (i) , (ii) , and (iii) only
D) (i) , (ii) , (iii) , and (iv)
Correct Answer:
Verified
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