Cash payments are generally preferable to in-kind payments when the utility of the transfer recipient is the only criterion because _____.
A) it is cheaper to distribute in-kind benefits
B) cash is necessary for utility maximization
C) recipients know their utility functions better than anyone else
D) of diminishing marginal utility
Correct Answer:
Verified
Q4: The closest thing in the real world
Q5: If increasing the utility of the transfer
Q6: The food stamp program was started to
Q7: The Earned Income Tax Credit was created
Q8: People on welfare often face the highest
Q10: Assume that increasing the utility of the
Q11: Food stamps are _.
A)financed by the federal
Q12: An advantage of a negative income tax
Q13: In-kind transfer payments are _.
A)efficient
B)popular with recipients
C)paternalistic
D)a
Q14: One advantage of a negative income tax
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