Which of the Following Is a Consequence of Subsidizing Consumers

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.