Which of the Following Is a Consequence of Subsidizing Consumers

question 63

Multiple Choice

Which of the following is a consequence of subsidizing consumers using a per-unit excise subsidy for the purchase of some good or service as opposed to a lump-sum payment of an equal amount?

• A)Consumers will not necessarily be better off according to their own preferences.
• B)The deadweight loss from over-consumption of the good or service is avoided.
• C)Consumers will move to a higher indifference curve.
• D)Consumers' purchase decisions will be based on their true valuation of the good.

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Definitions:

Dangerous

Involving potential harm or risk to health, safety, or well-being.

Hypnosis

A trance-like state of focused attention, increased suggestibility, and heightened imagination, often used for therapeutic purposes.

Evidence

Information or facts that are used to support the truth or validity of an argument or hypothesis.

Blood Pressure

The pressure exerted by circulating blood upon the walls of blood vessels, crucial for maintaining life and often measured for health assessments.