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

Question

Quizplus · Accepted Answer

In-kind transfers, such as food stamps or housing vouchers, do not allow recipients the flexibility to spend aid according to their own needs and preferences. Instead, they must use the aid as specified by the program, which may not align with their most pressing needs.

A Disadvantage Associated with In-Kind Transfers to Reduce Poverty Is