Unformatted text preview: Democrats. As a result, they think the government should do less redistribution of income than do Democrats. 2. What are the pros and cons of in-kind (rather than cash) transfers to the poor? The in-kind transfers are useful, so that poor families get what they really need. In particular, they received food and clothing rather than alcohol and drugs. However, the in-kind transfers of cash transfers is not good, they do not have the opportunity to choose other alternatives, because the family know best what they need. 3. John and Jeremy are utilitarian’s. John believes that labor supply is highly elastic, whereas Jeremy believes that labor supply is quite inelastic. How do you suppose their views about income redistribution differ? Since John believes that labor supply is highly elastic, he will want less redistribution of income, because elastic labor supply means a greater distortion from redistributive policies....
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- Summer '10
- Microeconomics, Redistribution, Labor Supply, income redistribution