Comparing the Original Budget Line with the Budget Line for an Excise

question 59

Multiple Choice

Comparing the original budget line with the budget line for an excise subsidy and a cash grant:

• A)the budget line for a cash grant shifts such that it is tangent to the same indifference curve so that the well-being of the consumer is the same.
• B)the slope of the budget line for a cash grant is positive.
• C)the budget line for a cash grant is parallel to the original budget line.
• D)the budget line for an excise subsidy shifts such that it is tangent to the same indifference curve so that the well-being of the consumer is the same.

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Definitions:

Psychoanalytic Explanation

An approach that explains human behavior and psychological problems through unconscious motives and conflicts.

Superego

In Freud’s structural model, the part of personality that represents society’s values.

Hypnosis

A trance-like state of altered consciousness, usually induced to access deeper levels of the mind, for therapeutic purposes.

Psychological Defense Mechanisms

Strategies used unconsciously by individuals to protect themselves from anxiety and to manage reality and internal conflict.