When the government provides food stamps to low-income households,

Question

Quizplus · Accepted Answer

While the provision of food stamps aims to increase food consumption among low-income households, the actual purchases of food may increase or decrease. It depends on the price elasticity of the foods that they buy, the availability of food stores in their area, and their food preferences. Some may opt to buy more expensive, nutritious foods, while others may choose cheaper, less healthy options. However, studies suggest that food stamp recipients tend to spend a significant portion of their benefits on food, indicating that the program helps alleviate food insecurity. Additionally, compared to cash aid, food stamps may lead to better nutrition outcomes and health among recipients.

When the Government Provides Food Stamps to Low-Income Households