How Can Measurements of Income Inequality Be Misleading to Politicians

question 162

Multiple Choice

How can measurements of income inequality be misleading to politicians and economists?

• A) There is no agreement as to what constitutes income inequality.
• B) All statistics regarding income inequality give disproportionate weight to factors like corruption and wealth.
• C) Since all forms of discrimination can be accurately quantified,policy makers may assume that other factors can be accounted for in the same manner.
• D) Most developed economies employ wealth redistribution systems,which skew the effect wealth has on income inequality.
• E) Income inequality is difficult to measure and easy to misinterpret.

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