Suppose That the Government Provides a Subsidy for the Consumption

question 33

Multiple Choice

Suppose that the government provides a subsidy for the consumption of good X.The demand curve with the subsidy will lie to the ______________ of the demand curve without the subsidy,and the equilibrium price of good X will be __________ with the subsidy than without.

• A) left;lower
• B) left; higher
• C) right; higher
• D) right;lower

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Definitions:

Locus of Control

A psychological concept that refers to individuals' belief about the extent to which their actions influence the outcome of events.

Neuroticism

A personality trait characterized by the tendency to experience negative emotions such as anxiety, anger, or depression.

Anxiety

An emotion characterized by feelings of tension, worried thoughts, and physical changes like increased blood pressure, stemming from anticipation of future danger or problems.

Hostility

Intense, often aggressive, opposition or animosity towards someone or something.