Why food stamps should not be re-sold

Assignment Help Business Economics

Reference no: EM139540

Q. (a) A country recently passed food stamp legislation. Qualified households are given food stamps, which can be used to purchase foods, but they cannot legally re-sell the food stamps. Assume a household receives a grant of $500 of food stamps every month. How will this household's budget line be affected? (Hint: Consider two goods: food also other goods.)

(b) Show that if the food stamps could be legally re-sold, the welfare of the household would be increased. Give one reason why food stamps should not be re-sold.

Reference no: EM139540

Questions Cloud

Efforts must be made to uncork also pour both bottles : whenever the same efforts must be made to uncork also pour both bottles.

Equilibrium level of income : Illustrate what is Nurd's equilibrium level of income. Illustrate what is likely to happen in the coming months if the government takes no action.

Uncrowned country club golf course : We said that an uncrowned country club golf course has aspects of public good.

What are the effects of awards paid : Illustrate what are the effects of awards paid to heirs of workers judged to have been worked to death in Japan on wages

Why food stamps should not be re-sold : Show that if the food stamps could be legally re-sold, the welfare of the household would be increased. Give one reason why food stamps should not be re-sold.

Apa format advising the president of rodamia : APA format advising the President of Rodamia making recommendations for international trade.

What is the prevailing price of oil at this level : Illustrate what is OPEC's optimal level of production? Illustrate what is the prevailing price of oil at this level.

Risk premium it charges on its loans : The risk premium it charges on its loans is classified as profits in economics.

Household receives a grant : Assume a household receives a grant of $500 of food stamps every month. How will this household's budget line be affected.

Reviews

Write a Review

Required(*) Message

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

User Account

All Pages