Question

A disadvantage associated with in-kind transfers to reduce poverty is that they Question 1 options: alter peoples' incentives, whereas a negative income tax does not alter peoples' incentives. do not allow poor families to make purchases based on their preferences. can only be distributed by the federal government. cannot restrict the group of recipients and some middle-class families may benefit from them.

Answer 1

do not allow poor families to make purchases based on their preferences.

Step-by-step explanation:

Economics can be classified into two (2) categories, namely;

1. Macroeconomics: it can be defined as the study of behaviors, performance and factors that affect the entire economy. Hence, it focuses on aggregate phenomena such as price level, economic growth, Gross Domestic Product (GDP), inflation, unemployment and national income levels with respect to the central bank, demand or supply shocks, government policies, aggregate spending and savings.

2. Microeconomics: it can be defined as the study of the effect of price and quantity levels through interactions between individual buyers and sellers in various markets.

Hence, it is focuses on analyzing or evaluating the decisions of consumers (buyers) and those of firms (sellers) such as methods of production, pricing; and the manner in which government policies affect those decisions.

An in-kind transfers refers to the type of payment made in form of material properties rather than in cash.

A disadvantage associated with in-kind transfers to reduce poverty is that they do not allow poor families to make purchases based on their preferences. Since these families cannot purchase the choice goods with money.