If an Equal-Cost Lump-Sum Transfer Were Substituted for a Per

question 52

Multiple Choice

If an equal-cost lump-sum transfer were substituted for a per unit excise subsidy on good X:

• A)the consumption of X under the excise subsidy would be higher and the consumer would be on a higher indifference curve.
• B)the consumption of X under the excise subsidy would be higher,but the consumer would be on the same indifference curve.
• C)the consumption of X under the lump-sum transfer would be higher and the consumer would be on a higher indifference curve.
• D)the consumption of X under the lump-sum transfer could be higher,but the cost of the transfer would be higher.

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Definitions:

Indirectly

Occurring in a roundabout way without a direct connection or straightforward path.

Discriminative Stimuli

Stimuli that signal the availability of reinforcement or punishment, guiding behavior in learning processes.

Operant Behaviour

A type of learning where behavior is controlled by consequences, including rewards and punishments.

Conditioning Principles

Conditioning Principles involve the processes of learning associations between environmental stimuli and behavioral responses, integral to both classical and operant conditioning.