Asked by Abdul Rahman Aljajah on Jul 14, 2024
Verified
When the distribution of income is adjusted for noncash transfers, the income distribution shows
A) perfect equality.
B) greater equality.
C) greater inequality.
D) little, if any, change.
Noncash Transfers
Benefits provided by governments or organizations to individuals that are not in the form of cash, such as food stamps or healthcare services.
Greater Equality
A situation in which disparities in income, wealth, opportunities, and status among individuals or groups are reduced.
- Identify the impact of non-cash transfers and governmental policies on the distribution of income.
Verified Answer
AM
Antoinette McCloudJul 21, 2024
Final Answer :
B
Explanation :
Noncash transfers, such as food stamps, housing assistance, and healthcare benefits, are designed to provide support to lower-income individuals and families. When these transfers are accounted for in the distribution of income, they effectively increase the real income of lower-income groups without affecting the income of higher-income groups, thus reducing the overall income inequality and showing greater equality in the distribution of income.
Learning Objectives
- Identify the impact of non-cash transfers and governmental policies on the distribution of income.
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