Which of the Following Represents a Problem in Measuring Inequality

Multiple Choice

Which of the following represents a problem in measuring inequality?

A) Measurements of income distributions typically include in-kind transfers, which distort the measure of inequality.
B) A normal life-cycle pattern causes inequality in the income distribution but may not reflect inequality in living standards.
C) Transitory income is a better measure of inequality than permanent income.
D) Both a and b are correct.