Explain why distributing $500 worth of food stamps to someone is not the same thing economically speaking as giving them $500 in cash? Why might the cash option make the poor better off than food stamps?
What will be an ideal response?
Food stamps can only be used for purchasing for food. Giving someone cash would allow them to spend money on other things as well. It may very well be that there are other expenditure items in the budget of some of the poor that have a higher priority and utility than food like heating oil, electricity, clothes or insurance. Cash allows them to spend more money on these items.
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All the following are examples of variable costs, except
a. Labor costs b. Cost of raw materials c. Accounting fees d. Electricity costs
People living in different countries can benefit from international trade because
a. different countries use different currencies. b. trade makes it possible for the residents of different countries to specialize in the production of those things they do best. c. trade makes it possible for people to acquire goods from foreigners cheaper than they could be produced domestically. d. both b and c are correct. e. all of the above are correct.
Equilibrium price
What will be an ideal response?
A firm reaches a break-even point (normal profit position) where:
A. marginal revenue cuts the horizontal axis. B. marginal cost intersects the average variable cost curve. C. total revenue equals total variable cost. D. total revenue and total cost are equal.