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Economics Assessment Task

1. (a) What are the economic justifications for distributing welfare payments via the cashless debit card?

   (b) Are they consistent with the standard economic argument that payment in kind is inferior in welfare terms to payment in cash?

2. (a) What ethical framework underlies the case for the cashless debit card you described above? 

Explain.

(b) Would it matter for this case if people using the cashless debit card were worse off compared to being able to allocate their own expenditure? Why or why not?

3. What arguments are there against the program based on the ethical framework you identified in Question 2?

4. What arguments can be made for and against the program based on an opposing ethical framework?

5. (a) Taking into account both the economic and ethical argument, is income management via the cashless debit card justifiable on balance or not?

    (b) If so, should it be applied to all recipients of government payments (e.g. pensioners, students)? If not, why not?

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  • Uploaded By : Keith
  • Posted on : December 24th, 2018

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