Multiple Choice
When a Clarke tax is used to finance a public good,each person's tax equals
A) the amount that he is willing to pay for the good.
B) the difference between the value he places on the public good and its cost.
C) the cost of the public good minus the value that other people claim to receive from it.
D) everyone else's tax,with the sum equaling the cost of producing the public good.
Correct Answer:
Verified
Correct Answer:
Verified
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