Annual Income Data Would Be a Better Index of Economic

question 1

Multiple Choice

Annual income data would be a better index of economic inequality if

• A) all households filed tax returns revealing their real income.
• B) households were more different with regard to age and size characteristics.
• C) all households were more similar with regard to size, age, education, and other major factors that are linked to income.
• D) mathematicians could grasp the complexities of the calculations.

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Definitions:

Donee Beneficiary

A donee beneficiary is a third party who benefits from a contract made between two other parties, where the intent is to gift the benefits of the contract to this third party.

Incidental Beneficiary

A third party who benefits from a contract incidentally but has no legal right to enforce the contract or claim damages.

Creditor Beneficiary

A third party who benefits from a contract in which the promisor agrees to pay the promisee’s debt.

Public Policy

General principles or ideologies that guide the creation of laws and the operation of government, reflecting the societal values and norms.