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If the Government Would Like to Induce a Consumer to Consume

Question 30

Multiple Choice

If the government would like to induce a consumer to consume a specific level of some good:


A) a cash subsidy system would likely be cheaper for the government than a voucher system.
B) a voucher system would likely be cheaper for the government than a cash subsidy system.
C) the government should only use a cash subsidy system since this always make consumers better off.
D) the government should only use a voucher system since this always makes consumers better off.

Correct Answer:

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