Economics Mcqs

A. transitory income is a good measure of the distribution of living standards
B. none of these answers
C. permanent income is a good measure of the distribution of living standards.
D. life-cycle income is a good measure of the distribution of living standards.
E. current annual income is a good measure of the distribution of living standards.

A. increase a worker’s current income and permanent income
B. reduce a worker’s current income but not necessarily their permanent income
C. affect neither the current nor the permanent income of a worker
D. reduce a worker’s permanent income but not their current income

A. accurately represent the true inequality of living standards
B. understate the inequality of living standards
C. exaggerate the inequality of living standards
D. could exaggerate of understate the inequality of living standards depending on whether the transfers are goods or services.