(Last Word) Early experiments with unconditional cash transfers have revealed that
A) most of these cash transfers are repaid within a very short time.
B) although the money is usually spent on education and capital, cultural obstacles generally prevent this spending from translating into long-term earnings gains.
C) a majority of recipients use the money for training and equipment that results in a higher long-term income.
D) most recipients spend the money on current consumption and realize no long-term gain in earning power.

Question

Quizplus · Accepted Answer

Early experiments with unconditional cash transfers have shown that a majority of recipients use the money for training and equipment that results in a higher long-term income. This has been observed in various studies conducted in different countries, such as Mexico, Uganda, and India. While there may be some recipients who use the money for current consumption, the overall trend has been towards investments in education, health, and productive assets, leading to improved earning power in the long-term.

(Last Word) Early Experiments with Unconditional Cash Transfers Have Revealed