Thursday
December 18, 2014

Homework Help: Microeconomics

Posted by Timica on Wednesday, October 12, 2011 at 12:14pm.

The poverty rate would be substantially lower if the market value of in-kind transfers were added to family income. The largest in-kind transfer is Medicaid, the government health program for the poor. Let's say the program costs $7,000 per recipient family.



(a) If the government gave each recipient family a $7,000 check instead of enrolling them in the Medicaid program, do you think that most of these families would spend that money to purchase health insurance? Why?



(b) How does your answer to part (a) affect your view about whether we should determine the poverty rate by valuing in-kind transfers at the price the government pays for them? Explain.



(c) How does your answer to part (a) affect your view about whether we should provide assistance to the poor in the form of cash transfers or in-kind transfers? Explain.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

microeconomics - how do i figure this out? if all incomes were equalized by ...
English - 1. Describe the program with gestures. 2. You have to gesture the kind...
Economics - If the government gave each recicient family a $7,000 check instead ...
Economics - Suppose that a family's tax liability equaled its income multiplied ...
HCR230 - 3. Assignment: Medicaid and Health Care Reform due Saturday, 11/6/2010 ...
Robeson Community college - The most common definition of this term is a social ...
Economics - consumption function, C=5+0.75*(Y-T). Y is,national income and T is ...
economics - What is the effective marginal tax rate of a government antipoverty ...
health care - The Social Security Act of 1965 introduced which of the following ...
socials - how poverty defined in canada? person living in poverty in canada have...

Search
Members