Economists experience difficulties in accurately measuring income inequality because of which of the following? Choose one or more: A. do-it-yourself production of goods and services (such as growing own food or making own clothing) that are not bought or sold in the market B. Measurements tend to use "before tax" income, not "after tax" income (disposable income), which is the income people actually have available to purchase goods and services. C. The Gini index calculation discriminates against the poor in developed economies. D. in-kind transfers where goods and services are given

Economists experience difficulties in accurately measuring income inequality because of the following:

A. do-it-yourself production of goods and services (such as growing own food or making own clothing) that are not bought or sold in the market

Explanation:

With do-it-yourself production of goods and services, it is very difficult to measure income inequality.  Income is measured as the value that is exchanged for goods and services in the marketplace, that is, by the forces of demand and supply.  These marketplace forces cannot be objectively measured when goods and services are produced and consumed by the same person.

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