The advantage of direct income supports is that they
A) Provide income security without distorting market prices and output.
B) Raise market prices.
C) Increase market output.
D) Reduce consumption.

Question

Quizplus · Accepted Answer

Direct income supports provide income security without distorting market prices and output. They do not impact or change market prices or output, which can happen with other types of government interventions, such as subsidies or price controls. Direct income supports provide a stable income to individuals or households, which can help alleviate poverty and increase consumer spending, without creating any negative impacts on the broader economy.

The Advantage of Direct Income Supports Is That They