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28 Sep 2019
The poverty rate would be substantially lower if the market valueof in-kind transfers were added family income. The largest in-kindtransfer is Medicaid, the government health program for the poor.Let's say the program costs $7,000 per recipient family.
a. If the government gave each recipient family a $7,000 checkinstead of enrolling them in the Medicaid program, do you thinkthat most of these families would spend that money to purchasehealth insurance? Why? (Recall that the poverty level for a familyof four is about $20,000.)
b. How does your answer to part (a) affect you view about whetherwe should determine the poverty rate by valuing in-kind transfersat the price the government pays for them? Explain.
c. How does your answer to part (a) affect your view about whetherwe should provide assistance to the poor in the form of cashtransfers or in-kind transfers? Explain.
The poverty rate would be substantially lower if the market valueof in-kind transfers were added family income. The largest in-kindtransfer is Medicaid, the government health program for the poor.Let's say the program costs $7,000 per recipient family.
a. If the government gave each recipient family a $7,000 checkinstead of enrolling them in the Medicaid program, do you thinkthat most of these families would spend that money to purchasehealth insurance? Why? (Recall that the poverty level for a familyof four is about $20,000.)
b. How does your answer to part (a) affect you view about whetherwe should determine the poverty rate by valuing in-kind transfersat the price the government pays for them? Explain.
c. How does your answer to part (a) affect your view about whetherwe should provide assistance to the poor in the form of cashtransfers or in-kind transfers? Explain.
a. If the government gave each recipient family a $7,000 checkinstead of enrolling them in the Medicaid program, do you thinkthat most of these families would spend that money to purchasehealth insurance? Why? (Recall that the poverty level for a familyof four is about $20,000.)
b. How does your answer to part (a) affect you view about whetherwe should determine the poverty rate by valuing in-kind transfersat the price the government pays for them? Explain.
c. How does your answer to part (a) affect your view about whetherwe should provide assistance to the poor in the form of cashtransfers or in-kind transfers? Explain.
manhokwe tawandaLv10
29 Sep 2019
