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If the Government Implements a Tax on the General Public

Question 51

Multiple Choice

If the government implements a tax on the general public to pay for street lighting in one neighborhood,


A) the tax redistributes well-being and the benevolent social planner is not pleased.
B) the tax redistributes well-being, but the benevolent social planner is pleased.
C) the tax reduces well being and the benevolent social planner is not pleased.
D) the tax has no bearing on well-being and the benevolent social planner is indifferent.

Correct Answer:

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