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Every year, the U.S. Census Bureau conducts an income survey of about 60,000 American families that are carefully selected to represent the whole population. The data collected are used to measure income inequality.

Which of the following is a reason that census data may not provide an accurate measure of standards of living?

- Census data overstate standards of living because noncash transfers are counted as income.

- Consumption is a better indicator than income of standards of living.

- Census data indicate income shares only for families, not households.

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