Answer to Question #136045 in Microeconomics for Breanna Wallace

Question

True or False

Evaluate the statement: “Those who receive food stamps would be better off by receiving cash (in the same value).” Use graphs and/or calculations to support your evaluation.

Answer 1

Those who receive food stamps would not be definately better off by receiving cash, because they may spend this cash not on food, but on something less important or even harmful for their living like cigarettes, alcohol, drugs etc.

But the purpose of food stamps is to help the poorest people who suffer from malnutrition and hunger, because it is one of the most important needs.

So, the statement is false.