Direct transfer programs are generally less efficient and less politically acceptable than subsidy programs.

Question

Quizplus · Accepted Answer

Direct transfer programs, such as cash transfers, tend to be more efficient in targeting the intended beneficiaries and reducing administrative costs compared to subsidy programs, which often involve complex rules and regulations. Additionally, direct transfer programs are considered more politically acceptable as they do not distort market prices or benefit specific producers or industries.

Direct Transfer Programs Are Generally Less Efficient and Less Politically