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Suppose Tax Shares Are Evenly Distributed for a Particular Service

Question 34

Multiple Choice

Suppose tax shares are evenly distributed for a particular service at the amount of $100.00 per person. Which taxpayer suffers a political externality based on the taxpayer's marginal benefit for the service


A) Taxpayer A has a marginal benefit of $100.00.
B) Taxpayer B has a marginal benefit of $200.00.
C) Taxpayer C has a marginal benefit of $90.00.
D) Taxpayers B and C.

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