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What is the reasoning behind forcing people to pay taxes in a free-market economy?

  • Question 1c of 10 - Taxes

  • Maximum Attempts: 1
  • Question Type: Multiple Choice
  • Maximum Score: 2
  • Question: What is the reasoning behind forcing people to pay taxes in a free-market economy?
  • Answers:
  1. To control the money supply and manage economic growth
  2. To enable the government to pursue the goals of equity and security
  3. To prevent foreign competitors from destroying essential domestic industries
  4. To provide revenues for government programs needed to protect the free market

The correct answer is: To provide revenues for government programs needed to protect the free market. The government needs money to ensure competition, protect consumers, and provide public goods.

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