Compared to the distribution of money income,the distribution of income that takes into consideration the effects of taxes and in-kind benefits _____
A)is less equal.
B)is the same.
C)is more equal.
D)focuses more on the average income earned by the richest five percent of the population.
E)ignores the effects of income redistribution on the poor.

Question

Quizplus · Accepted Answer

The distribution of income that takes into consideration the effects of taxes and in-kind benefits is more equal than the distribution of money income because taxes and in-kind benefits (such as food stamps, housing subsidies, and health insurance) are designed to redistribute income from the wealthy to the poor. Therefore, this distribution narrows the gap between the rich and the poor and creates a more equal distribution.

Compared to the Distribution of Money Income,the Distribution of Income