Suppose the Government Is Considering a Program to Give Housing

question 17

True/False

Suppose the government is considering a program to give housing vouchers to poor people. Assume the value of the voucher is greater than the amount currently being spent on housing per month by poor people. The housing voucher will necessarily cause more units of housing to be consumed by poor people, whereas an unrestricted cash subsidy with the same dollar value would not.

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Definitions:

Utility Function

A mathematical representation that ranks an individual's preferences over a set of goods and services, indicating levels of satisfaction.

Min Function

A mathematical function that identifies the smallest value from a set of numbers or inputs.

Income

The money received by an individual or business in exchange for providing labor, producing goods, or investing capital, over a certain period.

Price of X

Refers to the cost or value of an item, product, or variable denoted as "X."