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When the Government Both Provides a Service and Covers Its

Question 146

Multiple Choice

When the government both provides a service and covers its costs through taxation,


A) the government has a strong incentive to supply consumers with desired goods at a low cost.
B) consumers are in a weak position to either discipline the suppliers or alter the quantity or quality of the service provided.
C) the invisible hand will direct decision makers toward the most efficient level of output.
D) Consumers have strong incentive to be cost conscious.

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