If a Government Wants to Encourage the Consumption of a Particular

question 63

Multiple Choice

If a government wants to encourage the consumption of a particular good, it should enact:

• A) a subsidy to buyers, as this will most greatly affect consumption of the good.
• B) a subsidy to sellers, as this will increase the amount of the good that is produced and offered for sale.
• C) a subsidy to buyers, as this will give the benefit to the more deserved party.
• D) a subsidy on either buyers or sellers, as both will have the same effect on the market.

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Definitions:

Ethical

Pertaining to or dealing with morals or the principles of morality; conforming to accepted standards of social or professional behavior.

Power-oriented Characteristics

Traits or behaviors displayed by individuals that focus on gaining or maintaining influence or control over others.

David McClelland

A psychologist known for his work on motivation theory, specifically related to the needs for achievement, power, and affiliation.

Distributive Justice

A concept in social psychology and ethics that concerns the fair allocation of resources among members of a community, focusing on outcomes that are perceived as equitable and just.