Question

In: Economics

Which of the following transfers is most efficient? a. $100 in cash b. $100 medical care...

Which of the following transfers is most efficient?

a.

$100 in cash

b.

$100 medical care tax credit

c.

$10 itunes gift card

d.

$100 health insurance subsidy

Solutions

Expert Solution

a. $100 in cash

Cash transfer is most efficient because cash transfer increases consumption possibilities.


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