An Excise Subsidy Given on Clothing Will Encourage Consumers to Purchase

question 38

Multiple Choice

An excise subsidy given on clothing will encourage consumers to purchase:

• A)more clothing due to the substitution effect.
• B)less clothing due to the income effect.
• C)more clothing and less of other goods.
• D)less clothing since clothing is an inferior good.

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Definitions:

Risk

The probability of an adverse event happening, affecting an individual's health, safety, or success.

Population

The total number of individuals inhabiting a particular area or forming a particular group.

Cortisol

A steroid hormone produced by the adrenal glands, often referred to as the "stress hormone" because its levels increase in response to stress.

Norepinephrine

A neurotransmitter and hormone important in the body’s response to stress and for regulating mood, attention, and vigilance.