Some economists contend that in-kind transfers should be included in the calcula

Question

Some economists contend that in-kind transfers should be included in the calculation of an individual's income because in-kind items do not cost anything simple money income is not a complete measure of one's command over goods and in-kind items make a person "better off" than the person's actual money income would lead us to believe. b and c Question 2 (2 points) Which of the following statements is true? If the Gini coefficient is large, then the space between the Lorenz cürve and the line of perfect income equality will be small If the Gini coefficient is 1.00, then the Lorenz curve and the line of perfect income equality coincide If the government succeeds in decreasing income inequality, then the Gini coefficient will decrease If the Gini coefficient is 0.50, then one-hailf of the households eam one-half of the income, and the other half of the households earn the other half 1 Saved nsert 7 8 N M

Explanation / Answer

Question 1. b and c
Because simple money income is not a complete measure of purchasing power while in-kind items make a person feel good than the individuals actual money income

Question 2. Option c
True, if the government measures would decrease the income inequality then the Lorenz curve will get close to line of equality.

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