Imagine there is a local welfare agency that exercises


Imagine there is a local welfare agency that exercises consumer sovereignty by giving a specified amount of cash to a family to use for food. The family is eligible for the amount, but the agency does not follow up to make sure the family spent the money as allocated. Explain why this practice is ineffective from the agency's perspective as well as the family's perspective. How would you advise the agency to help them improve their allocation policy?

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