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?

I think that if the welfare agency is going to help these families they should limit the help they give. If they don't then the people getting help will never learn to stand on their own two feet, and will depend on that help forever and will also treat their kids that it ok. When they are out of money they are just going to keep coming...