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:

Meta-analysis

A statistical technique for summarizing the results of various studies on a specific topic into a single estimate of effect.

Randomized Control Trial (RCT)

A scientific study design that randomly assigns participants into an experimental group or a control group to measure the effect of an intervention.

Case-control Study

An observational study design that compares individuals with a specific condition or disease (cases) to individuals without the condition (controls), often used to identify factors that may contribute to a medical condition.

Evidence-informed Practice

A clinical decision-making approach that integrates the best current evidence with clinical expertise and patient values.