State whether you agree with the following statement and why: “It doesn’t make sense to give...
State whether you agree with the following statement
and why: “It doesn’t make
sense to give poor people cash since they’ll spend it on cigarettes
and lottery tickets
instead of needed items.”
Homework Answers
It is very hard to answer when the question is too general. Here we don't know the preferences or choices of an individual. So it is very difficult to make a conclusion out of it. We can't predict it. For some cash will allow them to reach higher utility and for others in kind transfers would be more effective.
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