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:

Utility

In economics, a measure of satisfaction or happiness that a consumer derives from the consumption of goods and services.

Satisfaction

The fulfillment of one's needs or the pleasure derived from consuming goods or services.

Consuming It

Pertains to the act of using up resources or products to satisfy needs or desires.

Ability

The possession of the means or skill to do something.