Because People's Incomes Vary Over the Life Cycle and Because

question 3

Multiple Choice

Because people's incomes vary over the life cycle and because there are transitory shocks to people's incomes, the standard measures of income distribution

• A) exaggerate the inequality of living standards.
• B) could exaggerate or understate the inequality of living standards depending on whether the transitory shocks are positive or negative.
• C) understate the inequality of living standards.
• D) accurately represent the true inequality of living standards.

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Definitions:

Maltase

Enzyme produced in the small intestine that breaks down maltose to two glucose molecules.

Pepsin

An enzyme produced in the stomach that initiates the digestion of proteins by breaking them down into smaller peptides.

Saturated Fats

Fats that contain no double bonds between carbon atoms, typically solid at room temperature and found in animal fats and some vegetable oils.

Refined Grain

Grain products that have been processed to remove the bran and germ, leaving behind the endosperm, often resulting in a loss of nutrients.