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    Principles of Microeconomics Study Set 10
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    Exam 12: The Design of the Tax System
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    If Revenue from a Cigarette Tax Is Used to Pay
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If Revenue from a Cigarette Tax Is Used to Pay

Question 467

Question 467

Multiple Choice

If revenue from a cigarette tax is used to pay for healthcare for people with lung cancer, the cigarette tax may be justified on the basis of


A) the benefits principle.
B) the ability-to-pay principle.
C) vertical equity.
D) horizontal equity.

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