Governments offer both cash assistance and in-kind benefits, such as payments that must be spent on food or housing. Will recipients be indifferent between receiving cash versus in-kind benefits with the same monetary values? Use indifference curve analysis to show the circumstances in which individuals would be indifferent and situations in which the form of the benefits would make a difference to them.
Answer to relevant QuestionsConsider Bill and Ted, the two citizens in the country of Adventure land described in Problem 9 from Chapter 1. Suppose that Bill and Ted have the same utility function U(Y) = Y1/2, where Y is consumption (which is equal to ...Your state introduced a tax cut in the year 1999. You are interested in seeing whether this tax cut has led to increases in personal consumption within the state. You observe the following information: Year . Consumption in ...You are hired by the government to evaluate the impact of a policy change that affects one group of individuals but not another. Suppose that before the policy change, members of a group affected by the policy averaged ...From 1962 to 1965, federal spending for the conduct of education and training rose from $1.30 billion to $1.96 billion, while from 2004 to 2008, it rose from $85.80 billion to $90.96 billion. Given that the Consumer Price ...How do you think population growth affects the degree of “generational balance” in government finance?
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