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Economists Often Assert That a Person Who Receives an In-Kind

Question 64

Multiple Choice

Economists often assert that a person who receives an in-kind transfer payment (from government) has a higher income as a result. But an in-kind transfer is not money income, so what are economists thinking?


A) They are thinking that an additional in-kind benefit, like more money income, makes a person better off and thus they are equating being better off (in the sense of having more goods and services) with a higher income.
B) They are thinking that persons who receive in-kind benefits end up selling them, receiving money in exchange.
C) They are thinking that the individuals who receive the in-kind benefits equate more in-kind benefits with more money income.
D) They are thinking that individuals who receive in-kind benefits would prefer to receive them over receiving additional money income, so that in-kind benefits are worth at least their monetary value.
E) none of the above

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