(Last Word) Early Experiments with Unconditional Cash Transfers Have Revealed

question 245

Multiple Choice

(Last Word) Early experiments with unconditional cash transfers have revealed that

• A) most of these cash transfers are repaid within a very short time.
• B) although the money is usually spent on education and capital, cultural obstacles generally prevent this spending from translating into long-term earnings gains.
• C) a majority of recipients use the money for training and equipment that results in a higher long-term income.
• D) most recipients spend the money on current consumption and realize no long-term gain in earning power.

---

Definitions:

Profit

The surplus amount after all expenses are deducted from the total income generated by a business or investment.

Price Discrimination

Charging different prices to different buyers for identical products.

Perfectly Price Discriminate

A situation where a seller charges each buyer their maximum willingness to pay, capturing all consumer surplus as profit.

Surplus

A condition where the supply of a product or service surpasses its demand at the existing price.