If an In-Kind Transfer Forces the Recipient to Consume More

question 61

Multiple Choice

If an in-kind transfer forces the recipient to consume more of the good than he would choose with a cash transfer of equal value, then:

• A)the recipient would prefer the in-kind transfer over a cash transfer of equal dollar value
• B)the recipient is indifferent between a cash transfer and an in-kind transfer
• C)the recipient would prefer a cash transfer of equal dollar value
• D)all of the above are possible

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Definitions:

Tax Returns

Official documents filed with tax authorities that report income, expenses, and other pertinent tax information.