econ problem?

Question

In what way do in-kind transfers affect the measured poverty rate?

A. In-kind transfers are usually given to families living above the poverty line and therefore don't help alleviate poverty.

B. Since in-kind transfers increase the volatility of the life cycle, they increase the measured number of families living below the poverty line.

C. If in-kind transfers were included in income, the measured number of families living below the poverty line would decrease.

Answer 1

C. Because such transfers, if they were counted as money income, would raise some families above the poverty line.