Which of the Following Is an Advantage of an In-Kind

question 377

Multiple Choice

Which of the following is an advantage of an in-kind transfer in comparison to a cash payment?

• A)In-kind transfers cost less to administer than cash transfers.
• B)In-kind transfers restrict the use of the benefit; thus, recipients receive necessities such as food and health care.
• C)In-kind transfers are more efficient than cash transfers.
• D)In-kind transfers give the recipient more utility than cash transfers.

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Definitions:

Absolute Advantage

The ability of an individual or country to produce more of a certain good compared to another individual or country using the same amount of resources.

Specialization

The process of focusing efforts and resources on a limited range of activities, goods, or services to gain efficiency, expertise, or productivity.

Productivity

A measure of the efficiency of production, often quantified as the ratio of output to inputs in the production process.

Total Production

The total output of goods or services produced by an individual or organization over a specific period.