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)

Question

Quizplus · Accepted Answer

Taxes can be justified for all the listed purposes: providing public goods, addressing negative externalities, regulating common resources, and supporting goods with positive externalities.

Taxes Can Be Justified If the Government Uses the Revenue