Evaluation of alternative government policies using indifference-curves analysis

Indifference curves may be used to evaluate the effects of alternative government policies. For example, assume that the government considers either the adoption of a food subsidization policy for pensioners or granting a supplementary income

to them.

Using diagraphs, explain the concept described above. Proper labeling of the graphs will be key in understanding you work.  

Also, explain Indifference – curve analysis and the theory of exchange and classification of goods.