Question

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.

Answer 1

Answer:

All of the above

Explanation:

Taxes are involuntary fees levied on individuals or corporations and enforced by government entity whether local or national in order to finance government activities. Taxes help in funding public works like medical research, national defense, water pollution etc.