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Mankiw Argues That a Primary Difference Between Taxing Products Like

Question 216

Multiple Choice

Mankiw argues that a primary difference between taxing products like gasoline and taxing soda and other sugary drinks is that


A) consumption of gasoline causes negative externalities on society while consumption of soda affects the consumer.
B) the government can generate significant revenue from the gas tax but not from a soda tax.
C) gasoline has inelastic demand but soda has elastic demand.
D) Both a and c are correct.

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