Question

The government subsidizes a wide variety of programs intended to help the poor, including social insurance and poverty programs, such as income assistance programs. Which of the following are examples of in-kind transfer programs?

a. Food stamps
b. Social Security
c. Earned-income
d. tax credit

Answer 1

Answer: a. Food stamps

Step-by-step explanation:

In-kind transfer programs aim to help the lower income members of society afford certain basic needs. They do not involve cash payments to the intended recipients but rather the government bears some of the cost instead.

Food stamps are in-kind transfer programs because they do not involve cash payments to the recipients but the government bears the cost when the recipients use the stamps.