Assume that increasing the utility of the transfer recipient is the only criterion cared about. When comparing a cash transfer payment to an in-kind payment of an equal value it is clear that _____
a. the recipient is always better off with a cash transfer
b. the recipient is never worse off with a cash transfer
c. the two are identical
d. the recipient would prefer an in-kind payment if legally possible
b
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Jim's Nursery produces and sells $1100 worth of flowers. Jim uses no intermediate inputs. He pays his workers $700 in wages, pays $100 in taxes and pays $200 in interest on a loan. Jim's contribution to GDP is
A) $900. B) $1000. C) $1100. D) $1800.
An example of moral hazard is
a. workers working diligently even though the boss is not looking b. health care insured forgoing their diet and exercise c. drivers of safer cars turning their phones off before driving d. borrowers investing their loan proceeds exactly as the bank requires
The powers of the Federal Reserve System do not include: a. the ability to buy and sell U.S. government securities
b. the ability to extend loans to commercial banks. c. the ability to provide deposit insurance for customers of member banks. d. the ability to impose reserve requirements on both member and nonmember commercial banks. e. the authority to clear checks.
The antitrust laws are enforced by government agencies such as the Federal Trade Commission and the Department of Justice.
Answer the following statement true (T) or false (F)