An Excise Subsidy Given on Each Unit of X Consumed

question 44

Multiple Choice

An excise subsidy given on each unit of X consumed will:

• A)reduce consumption of X and lower total expenditures on X.
• B)shift the budget line inward in a parallel manner.
• C)place the consumer on a higher indifference curve.
• D)cause the consumer to increase consumption of non-subsidized goods.

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Definitions:

Abdomen

The part of the body that lies between the thorax (chest) and pelvis, housing many vital organs, including the stomach, liver, and intestines.

Large Intestine

The final section of the digestive system, responsible for absorbing water and electrolytes and forming and storing feces.

Digestion

The biological process by which food is broken down into smaller components, making nutrients available for absorption into the body.

Absorption

The process by which substances are taken up into or across tissues, such as the absorption of nutrients by the intestines.