Because in-kind transfers are not accounted for in standard measures of income distribution the standard measures of income distribution ?

A. accurately represent the true inequality of living standards
B. understate the inequality of living standards
C. exaggerate the inequality of living standards
D. could exaggerate of understate the inequality of living standards depending on whether the transfers are goods or services.

Correct Answer: exaggerate the inequality of living standards ✔

Last Updated: June 11, 2019