If an In-Kind Transfer Forces the Recipient to Consume More

question 61

Multiple Choice

If an in-kind transfer forces the recipient to consume more of the good than he would choose with a cash transfer of equal value, then:

• A)the recipient would prefer the in-kind transfer over a cash transfer of equal dollar value
• B)the recipient is indifferent between a cash transfer and an in-kind transfer
• C)the recipient would prefer a cash transfer of equal dollar value
• D)all of the above are possible

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Definitions:

Slope

The measure of the steepness, incline, or grade of a straight line, reflecting the ratio of the vertical change to the horizontal change between two points on the line.

Y-Intercept

The point where a line crosses the Y-axis of a graph, indicating the value of the response variable when all predictor variables are zero.

Linear Regression Model

A statistical technique that establishes the link between a dependent variable and one or more independent variables by applying a linear equation to the data collected.

True Regression Line

In linear regression, the line that best describes the relationship between the independent and dependent variables across the entire population.