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Which of the Following Statements Is True

Question 27

Multiple Choice

Which of the following statements is true?


A) Consumers are better off with a fixed-quantity subsidy than an equal-cost voucher system.
B) Voucher systems will not increase the quantity consumed of the subsidized good.
C) With a fixed-quantity subsidy consumers will consume more of other goods.
D) Fixed-quantity subsidies and voucher systems can both place the consumer on a higher indifference curve.

Correct Answer:

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