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

question 4

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.

---

Definitions:

Mindfulness

The state of being and acting fully in the current moment.

Self-compassion

The practice of being kind and understanding toward oneself in instances of pain or failure, rather than being harshly self-critical.

Self-verification

The process through which people seek to confirm and maintain their self-concept by soliciting feedback that aligns with their own views of themselves.

Honing an Image

The process of deliberately crafting and maintaining a desired public or self-image.