If the Government Would Like to Induce a Consumer to Consume

question 30

Multiple Choice

If the government would like to induce a consumer to consume a specific level of some good:

• A)a cash subsidy system would likely be cheaper for the government than a voucher system.
• B)a voucher system would likely be cheaper for the government than a cash subsidy system.
• C)the government should only use a cash subsidy system since this always make consumers better off.
• D)the government should only use a voucher system since this always makes consumers better off.

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Definitions:

Unadvertised Function

A feature of a product or service that is not publicly promoted or made known to consumers.

Specified Date

A particular day that has been designated for a certain event, deadline, or action.

Manufacturer Discounts

Price reductions offered by manufacturers to distributors, retailers, or end-users, often to encourage bulk purchases or promote new products.

Handling Customer Complaint

The process of addressing and resolving complaints made by consumers in a way that aims to maintain customer satisfaction and loyalty.