The Increase in a Household's Well-Being Resulting from Participation in a Targeted

question 15

Multiple Choice

The increase in a household's well-being resulting from participation in a targeted transfer program becomes larger (all else equal) when?

• A) The program raises the household's non-labor income by more; or when it requires to households to undertake fewer costly behaviors
• B) The program raises the household's labor income by more; or when it requires the household to undertake more costly behaviors
• C) The program raises the household's asset value; or simply increases their labor hours
• D) The program lowers the threshold to qualify for the program; or includes more poor families into the program

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Definitions:

Captive Finance Company

A financial institution created by a company to provide loans and financial services exclusively to its customers.

Credit Extension

The act of providing a loan or increasing the credit limit available to a borrower, often by a financial institution.