Cash payments are generally preferable to in-kind payments when the utility of the transfer recipient is the only criterion because _____.
a. it is cheaper to distribute in-kind benefits
b. cash is necessary for utility maximization
c. recipients know their utility functions better than anyone else
d. of diminishing marginal utility
Question 2
If decision makers have limited ability to calculate profits from all possible combinations of options, they are said to have
A) dementia.
B) bounded rationality.
C) Pareto inefficiency.
D) a maximin problem.
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