Which statement is the best evaluation of a policy that gives cash payments to low-income families with children?
Answer and explanation
Correct answer: A. It may cut child poverty, but cost and work effects matter too
- Step 1: A balanced evaluation looks at both strengths and weaknesses.
- Step 2: Cash support raises household income but must be paid for and may influence other behaviour.
Answer
It may cut child poverty, but cost and work effects matter too.
Why not the others: It will end poverty completely for every family: no single policy does this. It has no effect on poverty: it adds income for the families. It is certain to increase employment among parents: the effect on work is uncertain.
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