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Author Question: What is the relationship between food stamps and cash transfer payments? When, if ever, are they ... (Read 113 times)

Bernana

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on: Jul 1, 2018
What is the relationship between food stamps and cash transfer payments? When, if ever, are they equivalent? When, if ever, might they diverge?
 
  What will be an ideal response?

Question 2

Which of the following does NOT represent a possible shape of the long-run average cost curve?
 
  A) downward sloping
  B) upward sloping
  C) U-shaped
  D) vertical


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l.stuut

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Reply #1 on: Jul 1, 2018
Answer to Question 1

Food stamps are equivalent to cash transfer payments in situations where recipients would have spent that much on food anyway had they been given cash. Food stamps are no longer equivalent to cash transfer payments for those individuals who receive more food stamps then they need to meet their food budget. In those situations, individuals are worse off because they would rather have cash to spend on all other goods.

Answer to Question 2

D


Bernana

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Reply #2 on: Jul 1, 2018
Thank you


l.stuut

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Reply #3 on: Jul 1, 2018
No problemo


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