Economists usually do not favor subsidies on specific products or in-kind payments to help low income people. This is because
A. the poor person could have increased utility if the same money used to subsidize a product would be given to them to use as they choose.
B. economists are individualists who believe that helping the needy makes them dependent.
C. in-kind payments suggest that the poor person does not have an indifference curve pattern from which to make choices.
D. a subsidy means that the recipient does not face a budget line anymore and therefore cannot maximize his welfare efficiently.
Answer: A
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In the early 1970s, in an attempt to solve the problem of the overvalued U.S. dollar, world leaders
a. increased the price of gold in terms of other currencies b. appreciated the dollar, which made foreign exchange cheaper to U.S. residents c. appreciated the dollar, which made foreign exchange more expensive to U.S. residents d. devalued the dollar, which made foreign exchange cheaper to U.S. residents e. devalued the dollar, which made foreign exchange more expensive to U.S. residents
The transfer payment that seems to be the lightning rod for media attention and political controversy is
a. agriculture b. natural resource conservation c. higher education d. public assistance e. space exploration
Which of the following examples shows unit elastic demand?
a. When the price of parakeets increases 10 percent, their sales decrease 6 percent. b. When the price of gold fish increases 10 percent, their sales remain the same. c. When the price of quarter horses increases 5 percent, their sales decrease 5 percent. d. When the price of Dalmatians increases 5 percent, their sales decease 100 percent.
GDP per capita is a relatively good measurement of:
A. the distribution of income. B. purchasing power. C. household production. D. the standard of living.