A Disadvantage Associated with In-Kind Transfers to Reduce Poverty Is

question 133

Multiple Choice

A disadvantage associated with in-kind transfers to reduce poverty is that they

• A) are more expensive than a negative income tax.
• B) are inefficient because they do not allow poor families to make purchases based on their preferences.
• C) focus on children and the disabled while neglecting the working poor.
• D) may benefit the teenage children of families who are not poor.

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Definitions:

Acquire

To obtain ownership of something, such as a company purchasing another company or an individual acquiring an asset.

Self-Interest

The pursuit of personal gain or advantage, which is a fundamental economic assumption about human behavior.

Welfare

Welfare denotes governmental support aimed at ensuring the basic physical and material well-being of people, particularly those in need.

Complete Knowledge

Refers to a hypothetical situation where all participants in a market have full and perfect information about products, prices, and other market conditions.