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:

Facial Expressions

The movements of the facial muscles that convey emotions and communication.

Eye Contact

The act of looking directly into another person’s eyes, often used as a form of nonverbal communication to convey attentiveness or confidence.

Personal Space

The physical space immediately surrounding someone, into which any encroachment feels threatening to or uncomfortable for them.

Touch

The sense by which humans and animals perceive pressure or sensation through their skin.