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The Purpose of a Clarke Tax Is to

Question 16

Multiple Choice

The purpose of a Clarke tax is to


A) give people an incentive to truthfully reveal their preferences for a public good.
B) raise enough revenue to pay for a public good.
C) give producers an incentive to supply nonrivalrous public goods in socially efficient quantities.
D) prevent the dissipation of rents that would occur with a nonexcludable public good.

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