A Subsidy Can Actually Cause the Consumption of Subsidized Goods

question 37

Multiple Choice

A subsidy can actually cause the consumption of subsidized goods to fall if:

• A)the consumer has concave indifference curves.
• B)the government prohibits resale of the good.
• C)the price of other goods also falls.
• D)the subsidized quantity of the good is fixed.

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Definitions:

Vision

The ability to think about or plan the future with imagination or wisdom; also refers to guiding principles or aspirations that drive individuals or organizations.

Judgment

The ability to make considered decisions or come to sensible conclusions.

Routines

Established sequences of actions or behaviors that are regularly followed, often to accomplish particular tasks or goals.

Achieving Styles

The characteristic ways in which individuals seek to achieve their goals and attain success.