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Economists experience difficulties in accurately measuring income inequality because of which of the following? Choose one or more: A. do-it-yourself production of goods and services (such as growing own food or making own clothing) that are not bought or sold in the market B. Measurements tend to use "before tax" income, not "after tax" income (disposable income), which is the income people actually have available to purchase goods and services. C. The Gini index calculation discriminates against the poor in developed economies. D. in-kind transfers where goods and services are given

Sagot :

anthougo

Answer:

Economists experience difficulties in accurately measuring income inequality because of the following:

A. do-it-yourself production of goods and services (such as growing own food or making own clothing) that are not bought or sold in the market

Explanation:

With do-it-yourself production of goods and services, it is very difficult to measure income inequality.  Income is measured as the value that is exchanged for goods and services in the marketplace, that is, by the forces of demand and supply.  These marketplace forces cannot be objectively measured when goods and services are produced and consumed by the same person.

ayfat23

Reason why the Economists do encounter some difficulty in the process of measuring income inequality is as result of A :do-it-yourself production of goods and services (such as growing own food or making own clothing) that are not bought or sold in the market

  • Income inequality  can be regarded as a way to measure unevenly income distribution among population.

  • When the distribution is less equal, then the income inequality will be high, however some difficulties are been faced by Economist in taking this measurement such as situation whereby people make the goods they need by themselves instead of getting it from market.

Therefore, option A is correct.

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