An Excise Subsidy Given on Each Unit of X Consumed

question 44

Multiple Choice

An excise subsidy given on each unit of X consumed will:

• A)reduce consumption of X and lower total expenditures on X.
• B)shift the budget line inward in a parallel manner.
• C)place the consumer on a higher indifference curve.
• D)cause the consumer to increase consumption of non-subsidized goods.

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Definitions:

Wholesaler

A person or company that sells goods in large quantities at lower prices, typically to retailers rather than directly to consumers.

Rack Jobbers

Merchandising agents who enter stores to stock and maintain inventory, often in the music or book sectors.

Hosiery

A category of garments worn on the legs and feet, such as socks and tights, often for fashion, comfort, or the needs of work attire.

Health and Beauty

A market sector focused on products and services designed to enhance physical appearance and well-being.