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.

Appreciating the role of consumer attitudes towards saving and borrowing in shaping economic outcomes.

Being aware of critical perspectives on high levels of consumer spending and its socio-economic implications.

Understand the concepts and distinctions of territorial behaviors.

Recognize the impact of environmental stressors on human behavior and well-being.

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