Which of the following statements about welfare assistance packages is true? An individual who receives food stamps:
(i) may be indifferent between food stamps and a cash transfer of equal dollar value
(ii) will always be better off with a cash transfer of equal dollar value
(iii) would always choose to spend less money on food with a cash transfer of equal dollar value
A)(i) only
B)(i) and (ii)
C)(i) and (iii)
D)(ii) and (iii)

Question

Quizplus · Accepted Answer

It is possible that some individuals who receive food stamps may value the convenience and assurance that the stamps will be used for food, and may not want to or be able to make choices about their spending. Therefore, they may be indifferent between receiving food stamps or a cash transfer of equal value. However, it is not true that they will always be better off with a cash transfer or that they would always choose to spend less money on food with a cash transfer.

Which of the Following Statements About Welfare Assistance Packages Is