Which of the Following Is Not Correct

question 168

Multiple Choice

Which of the following is not correct?

• A)Poverty is long-term problem for relatively few families.
• B)Measurements of income inequality usually do not include in-kind transfers.
• C)Measurements of income inequality use lifetime incomes rather than annual incomes.
• D)Measurements of income inequality would be more meaningful if they reflected permanent rather than current income.

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Definitions:

Invisible Hand

A metaphor introduced by Adam Smith to describe the self-regulating nature of the marketplace, where individual self-interests unintentionally benefit society as a whole.

Price Mechanism

The way in which prices rise and fall as a result of changes in demand and supply, guiding the allocation of resources in a market economy.

External Benefit

A benefit from a good or service that is received by someone not directly involved in the transaction or production of that good or service, also known as a positive externality.

Pollution

The introduction of contaminants into the natural environment that cause adverse changes and harm to the ecosystem.