Because In-Kind Transfers Are Not Accounted for in Standard Measures

Multiple Choice

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 or understate the inequality of living standards depending on whether the transfers are goods or services.