In Distributing Power Between the House and the Senate, the Final

question 53

Multiple Choice

In distributing power between the House and the Senate, the final compromise regarding the authority to raise or spend money required that bills raising revenue originate in which of the following?

• A) the Senate, with the House having an unrestricted right to amend them
• B) the House, with the Senate having a very limited right to amend them
• C) the House, with the Senate having an unrestricted right to amend them
• D) the Senate, with the House having a very limited right to amend them

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Definitions:

Substitution

The economic principle describing how consumers or producers replace one good or service with another in response to changes in price or other factors.

Substitution Effect

The substitution effect describes a change in consumption patterns due to shifts in relative prices, where consumers prefer cheaper alternatives when the price of a good rises, keeping their utility level constant.

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, in contrast to a normal good.

Indifference Curves

A graph showing different bundles of goods between which a consumer is indifferent.