Use a Diagram to Demonstrate the Circumstances Under Which a Consumer

question 91

Essay

Use a diagram to demonstrate the circumstances under which a consumer is indifferent between an in-kind transfer and a cash transfer of equal dollar value. If a cash transfer is always at least as preferred as an in-kind transfer, what do you think are the reasons for maintaining programs that rely on in-kind transfers? Explain your answer.

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Definitions:

Generalization

A broad statement or conclusion drawn from specific instances, applying to a wider set of circumstances.

Particulars

Refers to the specific, individual aspects or details of a subject or object that distinguish it from others.

Right

A moral or legal entitlement to have or do something; often considered fundamental and inherent.

Accident

A logical fallacy that occurs when an argument mistakenly applies a general rule to a specific case to which the rule does not appropriately apply.