The inclusion of in-kind transfers as part of total income would likely Blank______. Multiple choice question. increase the poverty rate by at least 2 percentage points bring the U.S. poverty count down into the 8–10 percent range. not change the official poverty rate
Added by Kelly M.
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In-kind transfers refer to non-cash benefits provided by the government, such as food stamps, housing assistance, and healthcare services. These are intended to help low-income individuals and families meet their basic needs. Show more…
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The poverty rate would be substantially lower if the market value of in-kind transfers were added to family income. The largest in-kind transfer is Medicaid, the government health program for the poor. Let's say the program costs $\$ 10,000$ per recipient family. a. If the government gave each recipient family a $\$ 10,000$ check instead of enrolling them in the Medicaid program, do you think that most of these families would spend that money to purchase health insurance? Why? (Recall that the poverty level for a family of four is about $\$ 25,000 .)$ b. How does your answer to part (a) affect your view about whether we should determine the poverty rate by valuing in-kind transfers at the price the government pays for them? Explain. c. How does your answer to part(a) affect your view about whether we should provide assistance to the poor in the form of cash transfers or in-kind transfers? Explain.
Jennifer S.
If the Census Bureau counted the missing $1.5 trillion in annual transfer payments, the poverty rate in the U.S. would be less than: a. 1% b. 2% c. 3% d. 4% 2. Average household in the bottom quintile has ___________ of available resources after accounting for net transfers received. In contrast, the average top-quintile household has average resources of ___________ after subtracting net taxes paid, rendering an inequality of _________ times as much as the bottom quintile. a. $4,908; $295,904; 60 b. $45,389; $109,125; 17 c. $17,850; $194,906; 3.1 d. $50,901; $194,906; 3.8
Akash M.
The poverty rate would be substantially lower if the market value of in-kind transfers were added to family income. The largest in-kind transfer is Medicaid, the government health program for the poor. Let's say the program costs \$10,000 per recipient family. a. If the government gave each recipient family a \$10,000 check instead of enrolling them in the Medicaid program, do you think that most of these families would spend that money to purchase health insurance? Why? (Recall that the poverty level for a family of four is about \$23,000.) b. How does your answer to part (a) affect your view about whether we should determine the poverty rate by valuing in-kind transfers at the price the government pays for them? Explain. c. How does your answer to part (a) affect your view about whether we should provide assistance to the poor in the form of cash transfers or in-kind transfers? Explain.
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