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.