If official poverty statistics for the United States included transfer payments individuals receive from the government, such as Social Security payments and other non-cash benefits such as food stamps
A)the poverty rate would be lower.
B)poverty would be eliminated.
C)income inequality would be greater.
D)the poverty rate would be overstated.

Question

Quizplus · Accepted Answer

Including transfer payments individuals receive from the government would increase individuals' reported income, thus reducing the poverty rate. However, it would not eliminate poverty entirely, and it may not affect income inequality. The poverty rate may be further reduced if other factors that affect poverty (such as cost of living and access to affordable healthcare) were also considered in the official statistics.

If Official Poverty Statistics for the United States Included Transfer