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) 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

The statement that an individual who receives food stamps may be indifferent between food stamps and a cash transfer of equal dollar value is true. While some individuals may prefer cash for its flexibility, for others, the restrictions on food stamp usage may be outweighed by the guarantee of being able to access food assistance. However, it is not always the case that they would be better off with a cash transfer of equal value or choose to spend less money on food with a cash transfer of equal value, so options (ii) and (iii) are not correct.

Which of the Following Statements About Welfare Assistance Packages Is