A disadvantage associated with in-kind transfers to reduce poverty is that they

A) alter peoples' incentives, whereas a negative income tax does not alter peoples' incentives.
B) do not allow poor families to make purchases based on their preferences.
C) can only be distributed by the federal government.
D) cannot restrict the group of recipients and some middle-class families may benefit from them.

In-Kind Transfers

Non-cash government assistance provided to individuals or groups, such as food stamps, housing, and healthcare services.

Negative Income Tax

A fiscal mechanism where people earning below a certain income threshold receive supplemental pay from the government instead of paying taxes.

Poverty Reduction

The process or strategies aimed at decreasing the number of people living in poverty and improving the living conditions of the poor.