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From an Economic Perspective, Imposition of a Per Unit Tax

Question 15

Multiple Choice

From an economic perspective, imposition of a per unit tax is only advantageous if:


A) the social benefits derived from added tax revenues are sufficient to overcome the social costs at a risk-adjusted rate of return.
B) the social benefits derived from added tax revenues are sufficient to overcome the private costs at a risk-adjusted rate of return.
C) the benefits derived from added tax revenues are sufficient to overcome the economic costs tied to the deadweight loss in social welfare.
D) positive tax revenues are generated.

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