“Because inframarginal consumers have the ability to reallocate all of their initial budget, giving them vouchers has the same impact on their spending as increasing their income by an equivalent amount.”

August 18, 2024August 18, 2024 Discipline: Economics

Coursework Title: Essay one
“Because inframarginal consumers have the ability to reallocate all of their initial
budget, giving them vouchers has the same impact on their spending as increasing
their income by an equivalent amount.”
Discuss this statement by (a) applying relevant intermediate microeconomic theory
and (b) referring to the evidence in the research literature.

To receive a pass mark for the essay, students need to:
1. Demonstrate an understanding of microeconomic theory at intermediate level.
2. Apply appropriate theoretical models to analyse real world questions and policy
issues.
3. Compare and contrast alternative models of economic behaviour.
4. Demonstrate an ability to communicate economic arguments in a structured and

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