Given a Choice Between an Equal-Cost Cash Grant and an Excise

question 19

Multiple Choice

Given a choice between an equal-cost cash grant and an excise subsidy,a consumer will:

• A)prefer an excise subsidy.
• B)prefer an excise subsidy if the good is a normal good.
• C)be indifferent between an excise subsidy and a cash grant.
• D)be worse off with an excise subsidy.

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Definitions:

Advocates

Individuals who actively support or defend a cause or policy, often on behalf of another person or group.

Helper-therapy Principle

The helper-therapy principle suggests that individuals who assist others in a therapeutic context can also benefit themselves, improving their own well-being through the process of helping.

Group Leader

Someone appointed or emerging within a group to steer its activities and decision-making processes toward collective goals.

"Rock-bottom" Groups

Informal or formal assemblies of individuals who have experienced a significant downfall or lowest point in their lives, often relating to addiction or severe personal challenges, seeking mutual support.