Multiple Choice

An economist is studying income differences in a small community of 5 households, labeled A, B, C, D, and E. To find the total number of unique income differences, the economist devises the following plan:

  1. Compare Household A to households B, C, D, and E.
  2. Compare Household B to households A, C, D, and E.
  3. Continue this process for all five households.

What is the primary flaw in this methodology for counting the unique differences?

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Updated 2025-08-01

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