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.

---

Definitions:

Standard Deviation

A quantification method for assessing the spread or variability within a dataset.

Interquartile Range

A measure of variability, defined as the difference between the 75th and 25th percentiles of a data set.

Interquartile Range

The difference between the 75th and 25th percentiles of a data set, representing the middle 50% of the data.

Outliers

Data points that differ significantly from the majority of a data set, often indicating variability in a measurement, experimental errors, or a novelty.