Governments Can Discourage Consumption of Certain Goods By

question 61

Multiple Choice

Governments can discourage consumption of certain goods by:

• A) a subsidy to consumers in those markets.
• B) taxing substitute goods.
• C) imposing a minimum price above the equilibrium price.
• D) None of these policies decrease consumption of goods.

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Definitions:

Nonemployee Agent

An individual or entity that acts on behalf of another party in a business transaction but is not considered an employee.

Nondelegable Duty Of Care

A legal obligation that cannot be transferred to another party and requires a person or entity to exercise a certain standard of care.

Independent Contractor

An individual or entity contracted to perform work for or provide services to another entity as a non-employee.

Bus Driver

A person employed to drive a bus, transporting passengers from one place to another.