Which of the Following Represents a Problem in Measuring Inequality

question 89

Multiple Choice

Which of the following represents a problem in measuring inequality?

• A)Measurements of income distributions typically include in-kind transfers, which distort the measure of inequality.
• B)A normal life-cycle pattern causes inequality in the income distribution but may not reflect inequality in living standards.
• C)Transitory income is a better measure of inequality than permanent income.
• D)There are no problems in measuring inequality.

---

Definitions:

Standard Deviation

Standard deviation is a statistic that measures the dispersion of a dataset relative to its mean and is used to quantify the amount of variation or dispersion of a set of data values.

Raw Scores

The initial, unadjusted scores obtained directly from tests or assessments before any normalization or conversion.

Test-retest Reliability

A measure of the consistency and stability of test results over repeated administrations under similar conditions.

Normal Curve

A symmetric, bell-shaped graphical representation of a normal distribution in statistics, where most occurrences take place around the mean.