President Vladimir Putin of Russia proposed re-placing in- kind subsidies such as free public trans-portation and rent- free apartments for government workers with cash subsidies of between $ 20 and $ 120 per month. The proposal led to widespread complaints among Russian citizens that the cash subsidies were not large enough. One reportedly asked, “What is a perk worth?” [ Chivers, 2004]. Use an indifference curve analysis to show how to convert an in- kind subsidy into a cash subsidy that leaves people equally well off.