In-kind transfers provide the direct transfer of goods and services, such as food stamps or housing assistance. They are not a payment for work, nor do they necessarily increase the poverty index. In fact, in-kind transfers can help reduce the moral hazards of the welfare system by ensuring that the assistance provided is used for its intended purpose.

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In-Kind Transfers

Question 4

Multiple Choice

In-kind transfers

A) Are a payment for work.
B) Increase the poverty index.
C) Are one way to reduce the moral hazards of the welfare system.
D) Provide the direct transfer of goods and services.

Correct Answer: