Smith Is Given a Voucher That Can Be Spent Only

question 17

Multiple Choice

Smith is given a voucher that can be spent only on textbooks. Smith has a budget constraint with textbooks on the horizontal axis and everything else on the vertical axis. Suppose everything else is comprised only of normal goods. Then:

• A) the voucher will result in Smith increasing his spending on textbooks by more than the amount of the voucher
• B) Smith will most likely end up spending some more money on everything else after receiving the voucher
• C) Smith will not buy any textbooks because he can use the voucher for all other goods
• D) Smith will most likely end up spending less money on everything else after receiving the voucher

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Definitions:

Zygomatic Arch

The arch of bone that forms from the temporal process of the zygomatic bone and the zygomatic process of the temporal bone, creating the prominence of the cheek.

Zygomatic Process

A bony projection of the temporal bone that articulates with the zygoma (cheekbone) to form part of the cheek structure.

Temporal Bone

A bone of the skull, situated at the sides and base of the cranium, involved in the protection of the inner ear.

Temporal Process

A projection on the zygomatic bone that helps form the zygomatic arch, connecting the zygomatic bone to the temporal bone of the skull.