How Can Measurements of Income Inequality Be Misleading to Politicians

question 162

Multiple Choice

How can measurements of income inequality be misleading to politicians and economists?

• A) There is no agreement as to what constitutes income inequality.
• B) All statistics regarding income inequality give disproportionate weight to factors like corruption and wealth.
• C) Since all forms of discrimination can be accurately quantified,policy makers may assume that other factors can be accounted for in the same manner.
• D) Most developed economies employ wealth redistribution systems,which skew the effect wealth has on income inequality.
• E) Income inequality is difficult to measure and easy to misinterpret.

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Definitions:

Public distrust

The feeling of skepticism or lack of confidence the general public may have towards institutions, authorities, or established systems.

Formal presentation

A structured, prepared speech that is given to an audience for the purpose of informing, persuading, or entertaining.

Guessing

Making an assumption or judgement without sufficient information or evidence, often relying on intuition rather than factual verification.

Organization levels

The hierarchy within an organization that starts from the top with strategic management, through to middle management and down to operational levels.