The statement that "measures of the distribution of income are based on money income" relates to which problem in measuring inequality?

Question

Quizplus · Accepted Answer

In-kind transfers, such as government-provided healthcare or housing, are not taken into account when measuring income inequality because they do not have monetary value. The statement specifically notes that income measures are based on money income, which excludes any nonmonetary benefits or transfers. Economic life cycle, transitory versus permanent income, and economic mobility are different issues related to measuring inequality, but not directly related to the statement about money income.

The Statement That "Measures of the Distribution of Income Are