Question

Measuring income inequality Every year, the U.S. Census Bureau conducts an income survey of about 60,000 American families that are carefully selected to represent the whole population. The data collected are used to measure income inequality Which of the following is a reason that census data may not provide an accurate measure of standards of living?
a.Consumption is a better indicator than income of standards of living
b.Census data overstate standards of living because noncash transfers are counted as income.
c.Census data indicate income shares only for families, not households.

Answer 1

Answer: Census data overstate Standard of living because no cash transfer are counted as income

Explanation:

The census being carryout by the government of the united state of America through the U.S bureau is to determine the inequality in income of the 60,000 to represent the population. This data may not be accurate because money transfered are not being recorded.