Which of the Following Statements Is True

question 181

Multiple Choice

Which of the following statements is true?

• A)If transfer payments such as Social Security payments to the retired and disabled were excluded from official statistics used to estimate the percentage of people with incomes below the poverty line, the amount of poverty in the United States would be much greater.
• B)Because the federal income tax system is progressive, measuring poverty using after-tax incomes results in a higher poverty rate than if poverty is measured using before-tax incomes.
• C)If non-cash benefits such as food stamps and rent subsidies were added to the incomes of low-income families, poverty would be eliminated.
• D)In the United States, income remaining after federal taxes are paid is more equally distributed than income before taxes.

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