Why is a food transfer unlikely to increase food consumption by the full amount of the transfer?
A) If there is a food shortage a cash transfer may do a better job increasing consumption
B) The food transfers reduce leakages to the non-poor
C) Some of the free food can substitute for food the recipient would have purchased,and can now be used to increase spending on other goods.
D) All of the above are reasons why a food transfer may not increase food consumption by as much as intended

Question

Quizplus · Accepted Answer

Some of the free food provided may substitute for the food that the recipient would have purchased using their own money. This means that the recipient may not increase their food consumption by the full amount of the food transfer. They may use the saved money to increase spending on other goods. Therefore, choice C is the correct answer. Choice A and B provide potential reasons why a cash transfer or reducing leakages may be more effective, but they are not directly related to why food transfers may not increase food consumption by the full amount.

Why Is a Food Transfer Unlikely to Increase Food Consumption