Suppose there is a high inequality in household income between the highest and the lowest income groups in one country. In response, the government raises the income tax for the highest income group and provides subsidies to the lowest-income group
What would happen to the Lorenz curve as a result of the government programs? Explain.
The government tax and subsidy policies would not change the Lorenz curve because it does not account for the income tax and income in kind provided by the government.
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Indicate whether the statement is true or false
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Answer the following statement true (T) or false (F)
The sub-discipline of economics that focuses especially on individual markets is:
a. normative economics. b. positive economics. c. microeconomics. d. macroeconomics. e. econometrics.
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A) risen; fallen B) fallen; risen C) risen; risen D) fallen; fallen