Compared to a direct cash transfer payment of an identical amount,food stamps make individuals who desire less food than the value of the food stamps _____.

Question

Quizplus · Accepted Answer

Food stamps are a form of in-kind transfer, which means that the recipient can only use them to purchase certain goods, in this case, food. If an individual desires less food than the value of the food stamps, they would be worse off with food stamps than with a direct cash transfer payment. With a cash transfer, they would have the option to allocate the money towards other goods or services that they desire more than food.

Compared to a Direct Cash Transfer Payment of an Identical