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Microeconomics

13th Edition
Roger A. Arnold
ISBN: 9781337617406

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BuyFindarrow_forward

Microeconomics

13th Edition
Roger A. Arnold
ISBN: 9781337617406
Textbook Problem

Welfare recipients would rather receive cash benefits than in-kind benefits, but much of the welfare system provides in-kind benefits. Is there any reason for not giving recipients their welfare benefits the way they want to receive them? Would it be better to move to a welfare system that provides benefits only in cash?

To determine

Cash benefits and in-kind benefits.

Explanation

Generally, the government focuses on the development of infrastructure of the country through providing welfare. Welfare can be provided either through in-kind benefit or cash benefits. In-kind benefits are the benefits obtained as basic needs such as housing, nutritionals, and health care. Cash benefits are the welfare benefits that are obtained in terms of cash. Most of the economists are the supporters of in-kind benefits that pave the way to development. When government provides the welfare benefits through cash, it will not be effective...

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