Economists Usually Do Not Favor Subsidies on Specific Products or In-Kind

question 18

Multiple Choice

Economists usually do not favor subsidies on specific products or in-kind payments to help low income people.This is because

• A)A subsidy means that the recipient does not face a budget line anymore and therefore can not maximize his welfare efficiently
• B)Economists are individualists who believe that helping the needy makes them dependent
• C)The poor person could have increased utility if the same money used to subsidize a product would be given to them to use as they choose
• D)In-kind payments suggest that the poor person does not have an indifference curve pattern from which to make choices

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Definitions:

Soil Conservation

The set of practices used to prevent soil erosion and degradation and to preserve its fertility.

Nutritional Needs

encompass the essential vitamins, minerals, and food energy required by an organism for healthy growth and function.

Global Food

Pertains to the production, distribution, and consumption of food products and resources worldwide, highlighting the interconnectedness of food systems on a planetary scale.

Spoilage

The process of food becoming unfit for consumption due to bacterial growth, chemical breakdown, or other reasons, often resulting in a decrease in nutritional value and safety.