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User Charges Link Funds Produced to Particular Public Services-Individuals Pay

Question 4

Multiple Choice

User charges link funds produced to particular public services-individuals pay only for the services they actually use. Why doesn't all government funding come from such freewill transactions and market exchange?


A) User charges cannot provide a way to reflect demand for a service.
B) Some services have non-appropriable characteristics.
C) Some services are produced in systems showing economies of scale.
D) None of the above.

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