The table above shows the distribution of income in Swacko. The government of Swacko imposes a 20 percent tax on people with the highest 40 percent of income
The government then distributes 40 percent of the tax collected to the lowest 20 percent and 30 percent to the second 20 percent and the middle 20 percent. After the redistribution, the Lorenz curve for income ________. A) is equal to the line of equality
B) equals the Lorenz curve for wealth
C) is closer to the line of equality
D) is above the line of equality
C
You might also like to view...
A tavern is likely to have a ______________________ price elasticity of supply than does an antiques dealer due to ______________________.
A. more elastic; availability of inputs B. less elastic; availability of inputs C. less elastic; a longer adjustment time D. less elastic; a shorter adjustment time
Which of the following is true of a current account surplus? a. A country that is running a current account surplus will have negative net exports
b. A current account surplus is consistent with domestic spending being in excess of domestic production. c. A current account surplus means that a country is also running a net surplus in its financial account. d. A country can have a current account surplus only if it exports more services as compared to goods. e. A country that is running a current account surplus buys more bonds from the rest of the world as compared to what it sells.
The combination of two or more companies into a single firm:
a. start-up costs b. merger c. patent d. monopoly e. deregulation
Which of the following countries has recently emerged as one of the world's top trading nations in terms of total trade volume?
A. Chile. B. India. C. Ireland. D. China.