Taxes Can Be Justified If the Government Uses the Revenue

Multiple Choice

Taxes can be justified if the government uses the revenue to (i)
Provide public goods such as national defense.(ii)
Clean up negative externalities such as water pollution.
(iii)
Regulate a common resource such as fish in a public lake.(iv)
Provide goods with positive externalities such as medical research.

A) (ii) only
B) (ii) and (iii) only
C) (i) , (ii) , and (iii) only
D) (i) , (ii) , (iii) , and (iv)