Direct transfer programs
A)are generally less efficient and less politically acceptable than subsidy programs
B)are generally more efficient and more politically acceptable than subsidy programs
C)are generally less efficient but more politically acceptable than subsidy programs
D)are generally more efficient but less politically acceptable than subsidy programs
E)will generally result in increased production by the group being subsidized

Question

Quizplus · Accepted Answer

Direct transfer programs are generally more efficient because they provide targeted assistance to individuals or groups in need, without the costs associated with the implementation and administration of subsidy programs. However, they may not be as politically acceptable because they are often viewed as "handouts" and may create a dependency on government assistance.

Direct Transfer Programs