Some economists have criticized standard government figures on income inequality, arguing that these data

A) exclude households whose earnings arise in the public sector.
B) conceal the strong trend toward greater equality in household sizes.
C) conceal the growth of poverty due to a growing number of discouraged workers.
D) overstate the degree of income inequality by failing to include noncash transfers as income.

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Adedoyin Juwon · Accepted Answer

Final Answer : D, Explanation :  Standard government figures on income inequality often do not account for noncash transfers such as food stamps, housing assistance, and Medicaid, which provide real economic value to recipients and effectively increase their income. Including these transfers in income calculations would show a lesser degree of income inequality than figures that exclude them.

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