Question

question 8
1 pts
which of the following statements is true?
if non - cash benefits such as food stamps and rent subsidies were added to the incomes of low - income families, poverty would be eliminated.
in the united states, income remaining after federal taxes are paid is more equally distributed than income before taxes.
because the federal income tax system is progressive, measuring poverty using after - tax incomes results in a higher poverty rate than if poverty is measured using before - tax incomes.
if transfer payments such as social security payments to the retired and disabled were excluded from official statistics used to estimate the percentage of people with incomes below the poverty line, the amount of poverty in the united states would be much greater.

Explanation:

1. Adding non - cash benefits won't eliminate poverty as the root causes remain.
2. Federal taxes in the US are progressive, which redistributes income and makes post - tax income more equally distributed.
3. Progressive federal income tax reduces the income gap, so poverty rate is lower with after - tax incomes.
4. Transfer payments like Social Security help the retired and disabled stay above the poverty line. Excluding them would increase the poverty estimate.

Answer:

D. If transfer payments such as Social Security payments to the retired and disabled were excluded from official statistics used to estimate the percentage of people with incomes below the poverty line, the amount of poverty in the United States would be much greater.