The degree of inequality in income distribution based on single-year data is

A) understated even though it takes into account income mobility.
B) overstated because it does not take into account income mobility.
C) understated because it does not take into account income mobility.
D) overstated even though it takes into account income mobility.

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tawab sadique · Accepted Answer

Final Answer : B, Explanation :  The degree of inequality in income distribution based on single-year data is often overstated because it does not take into account income mobility, which refers to the movement of individuals or households up or down the income scale over time. Single-year snapshots can't capture these dynamics, leading to a potentially exaggerated perception of inequality.

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