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:

Louis Wirth

A sociologist known for his work on urban life and the social structure of cities.

Rural Life

A lifestyle or environment characterized by living in the countryside, often associated with farming, small communities, or lower levels of urbanization.

Suburban Life

A lifestyle characterized by residing in the suburbs, areas that lie on the outskirts of a city, often depicting a middle-class, residential environment.

Ecological Succession

The process by which the structure of a biological community evolves over time, involving species that colonize an environment and gradually change it, leading to the replacement of one group of species by another.