When the distribution of income is adjusted for noncash transfers, the income distribution shows

Question

Quizplus · Accepted Answer

Noncash transfers, such as food stamps, housing assistance, and healthcare benefits, are designed to provide support to lower-income individuals and families. When these transfers are accounted for in the distribution of income, they effectively increase the real income of lower-income groups without affecting the income of higher-income groups, thus reducing the overall income inequality and showing greater equality in the distribution of income.

When the Distribution of Income Is Adjusted for Noncash Transfers