Why isn't the level of personal income always a good measure of the distribution of goods and services?
What will be an ideal response?
Personal income does not include goods and services received as in-kind income. In addition, personal income does not measure the recipient's level of wealth, which is a potential source of purchasing power for goods and services.
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Which of the following statements is correct?
a) The Federal Reserve's actions are subject to executive branch control. b) Politically controlled banks are better at fighting inflation than independent central banks. c) The Federal Reserve is considered to be an independent central bank. d) The Federal Reserve System is not subject to Congressional oversight.
During recession, banks become increasingly hesitant to make loans
a. because they typically hold zero excess reserves b. because borrowers are more numerous than in any other phase of the business cycle c. because they want to create lower consumer spending d. because they expect the recovery phase that follows will cause inflation e. and are more willing to hold greater excess reserves