Question 1

When a transfer program strengthens incentives towards behaviors that are rewarded by eligibility,they induce incentive effects.Give two examples of an intended behavior incentive effect and at least one example of an unintended incentive.

Accepted Answer

The answer of When a transfer program strengthens incentives towards...

Question 2

Although at first glance targeted transfer payments don't appear very "developmental" in recent years these programs have become very important.Why are targeted transfer programs a necessary part of development?

Accepted Answer

The answer of Although at first glance targeted transfer payments...

Question 3

In order for a program to achieve significant poverty reduction,policy makers hope to avoid two types of targeting failure:

Accepted Answer

A)  Non coverage of the poor,also called an inclusion error and leakage to the non-poor also called an exclusion error 
B)  Non coverage of the poor,also called an exclusion error and leakage to the non-poor also called an inclusion error 
C)  Over-coverage of the poor,also called an inclusion error and under-coverage of the poor also called an exclusion error 
D)  Over-coverage of the poor,also called an exclusion error and under-coverage of the poor also called an inclusion error

Question 4

Conditional cash transfer programs differ from traditional targeted transfer programs in that they___________.

Accepted Answer

A)  Require poor families to meet some means test threshold for poverty 
B)  Require poor families to do something to receive the money such as send kids to school 
C)  Conditional cash transfer payments suffer from many more leakages than traditional targeted transfer programs 
D)  Conditional cash transfer programs have do not encourage investments in human capital as traditional targeted transfers do

Question 5

When households consume more leisure time as a results of a transfer program,they reduce their labor supply,and the transfer is said to __________.Theoretically this decrease in labor supply could cause wages to ___________.

Accepted Answer

A)  Crowd out labor income; decrease 
B)  Crowd out non-labor income; increase 
C)  Crowd out labor income; increase 
D)  Crowd out non-labor increase; decrease

Question 6

All of the following are reasons that a poor household may fail to participate in a transfer program except:

Accepted Answer

A)  They are unaware the program exists 
B)  They fail the eligibility test 
C)  They perceive the costs to outweigh the benefits of the program 
D)  They perceive the benefits outweigh the costs of the program

Question 7

Job counseling services,nutrition lectures and opportunities to meet with other participants are examples of _______,while the time,money and psychological costs of traveling to application and distribution sites,waiting in line,complying with behavioral conditions,and dealing with program personnel are examples of ____________:

Accepted Answer

A)  Private benefits of participation; the private costs of participation 
B)  Marginal private benefits; marginal private costs 
C)  Indirect private benefits; external private costs 
D)  Indirect public benefits; indirect public costs

Question 8

Why might a government prefer a food transfer over a cash transfer?

Accepted Answer

A)  The cost of a cash transfer is more expensive than a food transfer 
B)  The cost of providing a food transfer is greater than providing a cash transfer 
C)  A food transfer increases food consumption by the full amount of the transfer 
D)  A food transfer may do a better job a preventing leakages to the non-poor

Exam 15: Targeted Transfer Programs