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One question that should be asked is whether the government is using this excise tax or regulation as a way to try to keep people from buying the product because they think it is bad for them, as in the case of tobacco or alcohol. Another question that can be asked is whether the regulations are for the purpose of trying to control the environmental effects, as in the case of automobiles.

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Q: What questions should be asked about an excise tax or government supply regulation to determine its purpose?
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To determine if a project is worth doing. THIS IS THE RIGHT ANSWER!

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Which of the following is NOT a purpose of government regulation?

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