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An In-Kind Transfer May Be Preferred to a Lump-Sum Cash

Question 3

Multiple Choice

An in-kind transfer may be preferred to a lump-sum cash transfer because


A) it is cheaper to administer in-kind transfers.
B) it is difficult for the government to distinguish who is in need.
C) the government knows individuals' needs.
D) cash transfers are not valued as much as in-kind transfers.

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