Smith Is Given a Voucher That Can Be Spent Only

question 31

Multiple Choice

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

• A)the voucher causes Smith to increase 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)the voucher does not have any impact on Smith's consumption..

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Definitions:

Identical Twins

Twins that originated from the same fertilized egg, sharing all of their genetic material, and typically having very similar appearances.

Dizygotic Twins

Dizygotic twins, also known as fraternal twins, are produced from the fertilization of two separate eggs during the same pregnancy, sharing about 50% of their DNA.

Fraternal Twins

Siblings born at the same time from separate eggs fertilized by different sperm cells, sharing 50% of their DNA.

One-Child Policy

A government-imposed limit of one child per family, famously utilized by China from 1979 to 2015 to control population growth.