Received an equivalent amount of cash assistance

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There are many “in-kind” versus cash payments made by the government to citizens such as food stamps, medical care, and public housing. Use an indifference curve/budget line diagram for “food” and “all other goods” to demonstrate that receiving food stamps, which can only spent on food, leaves a consumer no better off and possibly worse off than if they had received an equivalent amount of cash assistance.

Reference no: EM131009745

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