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Unformatted text preview: by the poor families? Why? (b) How do parents who do not receive subsidies feel about these two programs? Do they prefer one over another? (c) If both programs leave the poor parents equally as well off, which program is more costly to the government? Explain. (d) Under what circumstance recipients prefer in-kind subsidy to a comparable amount of cash subsidy? Why does the government give the poor families in-kind subsidy (such as food stamp) rather than a comparable amount of cash? 3. Public medicare program provides free medical benefits to Canadians. Show the effect of medicare program on consumption of medical services, as well as the excess burden of the medicare subsidy....
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- Fall '06
- J Liu