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How Can Measurements of Income Inequality Be Misleading to Politicians

Question 114

Multiple Choice

How can measurements of income inequality be misleading to politicians and economists?


A) There is no agreement as to what constitutes income inequality.
B) All statistics regarding income inequality give disproportionate weight to factors like corruption and wealth.
C) Since all forms of discrimination can be accurately quantified,policy makers may assume that other factors can be accounted for in the same manner.
D) Most developed economies employ wealth redistribution systems,which skew the effect wealth has on income inequality.
E) Income inequality is difficult to measure and easy to misinterpret.

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