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If the Government Wants to Encourage the Consumption of a Particular

Question 153

Multiple Choice

If the government wants to encourage the consumption of a particular good,they should enact:


A) a subsidy to buyers, since they want to affect consumption of the good.
B) a subsidy to sellers, since they want more to be produced and offered for sale.
C) a subsidy to buyers, since they deserve the benefit more than the producers.
D) a subsidy on either buyers or sellers, since they will both have the same effect on the market.

Correct Answer:

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