Deck 15: Targeted Transfer Programs

Question 1

If F is the quantity food to which households are entitled,Ps is the subsidized price the household has to pay to obtain the good,and Pᵤ is the unsubsidized price,what is the formula for the cash value of any transfer?

A) (Pu + Ps)*F
B) (Pu - Ps)*F
C) (Ps -Pu)*F
D) F + (Ps + Pu)

Answer 1

B

Question 2

When a transfer program benefits lead to more influence in the family,__________effects are introduced.Indeed empirical studies have confirmed the presence of _______________effect where the benefits targeted to specific household member stick to those members.

A) Inter-household; target
B) Intra-household; flypaper
C) Inter-household; flypaper
D) Intra-household; target

Answer 2

B

Question 3

The specific objectives of individual targeted transfer programs can differ in all of the following ways except:

A) Reducing current poverty
B) Target level of income
C) Targeted behaviors
D) Target populations

Answer 3

A

Question 4

What is meant by the Coady et al.(2004)study that found that 25% of transfer programs were regressive?

A) A larger share of the program benefits went to poor rather than non -poor
B) The fees charged went up as the participants use more of the program
C) A larger share of the program benefits went to non-poor rather than the poor
D) The fees charged to private households for the transfer programs decreases as the program is used.

Question 5

The most obvious impact on a household who participates in transfer program is the increase in non-labor income,which can _____________.

A) Tighten budget constraints and induce substitution effects
B) Relax budget constraints and induce substitution effects
C) Tighten budget constraints and induce income effects
D) Relax budget constraints and induce income effects

Question 6

The increase in a household's well-being resulting from participation in a targeted transfer program becomes larger (all else equal)when?

A) The program raises the household's non-labor income by more; or when it requires to households to undertake fewer costly behaviors
B) The program raises the household's labor income by more; or when it requires the household to undertake more costly behaviors
C) The program raises the household's asset value; or simply increases their labor hours
D) The program lowers the threshold to qualify for the program; or includes more poor families into the program

Question 7

Eligibility rules can include all of the following except:

A) Means testing
B) Proxy means tests
C) Poverty score cards
D) Target lifestyles

Question 8

Government structure design decisions include:

A) Decisions regarding eligibility requirements and transfer sizes
B) Decisions regarding individual household enrollment in the transfer program
C) Decisions that directly impact household
D) Deciding how best to exclude the most rural and thus expensive households

Question 9

Cash and food transfer programs may have important effects on local markets for food,but only when the programs are ________ relative to the local markets.In such cases the ___________ in price ________consumers and ___________ sellers.

A) Small; increase; helps; hurts
B) Small; decrease; helps; hurts
C) Large; decrease; hurts; helps
D) Large; increase; hurts; helps

Question 10

In order for a program to achieve significant poverty reduction,policy makers hope to avoid two types of targeting failure:

A) Non coverage of the poor,also called an inclusion error and leakage to the non-poor also called an exclusion error
B) Non coverage of the poor,also called an exclusion error and leakage to the non-poor also called an inclusion error
C) Over-coverage of the poor,also called an inclusion error and under-coverage of the poor also called an exclusion error
D) Over-coverage of the poor,also called an exclusion error and under-coverage of the poor also called an inclusion error

Question 11

Official transfer sizes are a measure of a transfer program's _______?

A) Marginal cost
B) Impact on the poor
C) Availability
D) Generosity

Question 12

Rationed food subsidies:

A) Cost the government more the smaller is the difference between the subsidized and market price
B) Allows households to buy limited quantities of staple foods at lower-than-market prices
C) Allows households to buy unlimited quantities of staple foods at lower-than-market prices
D) Gives baskets of food to poor households

Question 13

Social norms and institutions guide some families or communities to provide mutual assistance.So a household that can receive a transfer may be unable to receive the private help they would normally receive.This public transfer is said to:

A) Replace public transfers
B) Substitute public safety net transfers
C) Substitute private safety net transfers
D) Crowd out private transfers

Question 14

All of the following are reasons that a poor household may fail to participate in a transfer program except:

A) They are unaware the program exists
B) They fail the eligibility test
C) They perceive the costs to outweigh the benefits of the program
D) They perceive the benefits outweigh the costs of the program

Question 15

When households consume more leisure time as a results of a transfer program,they reduce their labor supply,and the transfer is said to __________.Theoretically this decrease in labor supply could cause wages to ___________.

A) Crowd out labor income; decrease
B) Crowd out non-labor income; increase
C) Crowd out labor income; increase
D) Crowd out non-labor increase; decrease

Question 16

All of the following could be reasons why transfer program participants' non-labor fails to increase by the full amount of the transfer except:

A) Participants have to pay for transportation to collect benefits
B) Local officials requiring "kickbacks"
C) Participants have to pay for the eligibility testing themselves
D) Budget constraints lead local program implementers to distribute transfers smaller than the official size

Question 17

Some programs employ proxy means tests which:

A) Are less restrictive than a categorical restriction
B) Are more restrictive than means testing
C) Employ short questionnaires often called "poverty score cards"
D) Uses easy to observe characteristics such as having at least one child

Question 18

Job counseling services,nutrition lectures and opportunities to meet with other participants are examples of _______,while the time,money and psychological costs of traveling to application and distribution sites,waiting in line,complying with behavioral conditions,and dealing with program personnel are examples of ____________:

A) Private benefits of participation; the private costs of participation
B) Marginal private benefits; marginal private costs
C) Indirect private benefits; external private costs
D) Indirect public benefits; indirect public costs

Question 19

Conditional cash transfer programs differ from traditional targeted transfer programs in that they___________.

A) Require poor families to meet some means test threshold for poverty
B) Require poor families to do something to receive the money such as send kids to school
C) Conditional cash transfer payments suffer from many more leakages than traditional targeted transfer programs
D) Conditional cash transfer programs have do not encourage investments in human capital as traditional targeted transfers do

Question 20

When a targeted transfer program is able to respond quickly to shocks is said to exhibit ________

A) Efficiency
B) Flexibility in targeting
C) Flexibility in funding
D) Flexibility in few collection

Question 21

How can increasing community participation in the governance of a transfer program increase a program's efficiency?

A) Allows information to be disseminated more easily about the program
B) The cost of enforcement increases
C) Local decision makers have better information about household's eligibility
D) Local decision makers have access to worse information than a government bureaucrat

Question 22

Why might transfer programs fail to raise participants' non-labor income by the full amount of the transfer?

Question 23

Although at first glance targeted transfer payments don't appear very "developmental" in recent years these programs have become very important.Why are targeted transfer programs a necessary part of development?

Question 24

When a transfer program strengthens incentives towards behaviors that are rewarded by eligibility,they induce incentive effects.Give two examples of an intended behavior incentive effect and at least one example of an unintended incentive.

Question 25

Analysts often rely on shares of a program's budget that goes to administrative costs as a measure for the efficiency of a transfer program.However ____________ are still possible,which can __________a transfer programs efficiency.

A) Leakages to the non-poor; decrease
B) Leakages to the poor; increase
C) Injections to the non-poor; not effect
D) Injections to the poor; decrease

Question 26

Why might a government prefer a food transfer over a cash transfer?

A) The cost of a cash transfer is more expensive than a food transfer
B) The cost of providing a food transfer is greater than providing a cash transfer
C) A food transfer increases food consumption by the full amount of the transfer
D) A food transfer may do a better job a preventing leakages to the non-poor

Question 27

Why is a food transfer unlikely to increase food consumption by the full amount of the transfer?

A) If there is a food shortage a cash transfer may do a better job increasing consumption
B) The food transfers reduce leakages to the non-poor
C) Some of the free food can substitute for food the recipient would have purchased,and can now be used to increase spending on other goods.
D) All of the above are reasons why a food transfer may not increase food consumption by as much as intended

Question 28

Why might a conditional cash transfer (CCF)program that requires school attendance as the precondition to qualify fail to increase enrollment rates significantly?

A) The conditions may be poorly enforced
B) Enrollment rates may already be high
C) The cash transfers pay is not able to overcome the liquidity constraints of school attendance.
D) All of the above are reasons why a CCF may fail to increase school enrollments