Poverty is better studied with size distribution measures than those based on factor distribution because
A)labor income may be highly concentrated in well-paid modern sector workers.
B)some poor farmers may receive a sizable share of income in rent.
C)income from nonmarket activities such as foraging may be important.
D)all of the above.

Question

Quizplus · Accepted Answer

All of the options given are reasons why size distribution measures are better suited for studying poverty than factor distribution measures. Labor income may be concentrated among a few well-paid workers in modern sectors, meaning that using factor distribution measures may understate the level of poverty among other workers. Similarly, poor farmers who receive a significant portion of their income in rent may not be accurately represented by factor distribution measures. Lastly, individuals engaged in nonmarket activities such as foraging may be missed by factor distribution measures, but would be included in size distribution measures.

Poverty Is Better Studied with Size Distribution Measures Than Those