The Effect of Substituting an Equal-Cost Lump-Sum Grant for an Excise

question 48

Multiple Choice

The effect of substituting an equal-cost lump-sum grant for an excise subsidy is to:

• A)increase the consumption of the subsidized good and increase the consumption of other goods.
• B)decrease the consumption of the subsidized good and increase the consumption of other goods.
• C)decrease the consumption of the subsidized good and decrease the consumption of other goods.
• D)increase the consumption of the subsidized good and decrease the consumption of other goods.

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Definitions:

Repression Theory

A psychological concept suggesting that individuals unconsciously push disturbing thoughts, desires, and memories out of conscious awareness.

Interference Theory

A theory suggesting that the ability to remember information is affected by competing information, either before or after the learning process.

Proactive Interference

The difficulty in learning new information because of the interference from existing, previously learned information.

Retroactive Interference

A phenomenon where newly acquired information interferes with the recall of previously learned information.