

MCQOPTIONS
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1. |
Because people’s income vary other the life cycle and because there are transitory shocks to people’s incomes the standard measures of income distribution ? |
A. | exaggerate the inequality of living standards |
B. | could exaggerate or understate the inequality of living standards depending on whether the transitory shocks are positive or negative |
C. | understate the inequality of living standards |
D. | accurately represent the true inequality of living standards |
Answer» B. could exaggerate or understate the inequality of living standards depending on whether the transitory shocks are positive or negative | |