On the following graph, use the blue points (circle symbol) to plot the Lorenz curves for this economy. Plot points from left to right, in the order inwhich you would like them to appear. Line segments will automatically connect the points. (Hint: Remember to plot the first point at the origin (0,0)and the last point at (100,100).)CUMULATIVE PERCENTAGE OF INCOME1009088070822 22 2050403020100 10 20 30 40 50 60 70 800 100CUMULATIVE PERCENTAGE OF HOUSEHOLDSLorenz Curve 1. Working with Numbers and Graphs Q1The following table shows the income distribution of an economy.QuintileLowest fifthSecond fifthThird fifthFourth fifthHighest fifthIncome Share(Percent)1819202122

Lorenz curve is a graphical representation of income inequality. Basically it plots the percentiles…

1. Working with Numbers and Graphs Q1 The following table shows the income distribution of an economy. Quintile Lowest fifth Second fifth Third fifth Fourth fifth Highest fifth Income Share (Percent) 18 19 222 20 21

1. Working with Numbers and Graphs Q1 The following table shows the income distribution of an economy. Quintile Lowest fifth Second fifth Third fifth Fourth fifth Highest fifth Income Share (Percent) 18 19 222 20 21

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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QUESTION 19 Which of these is NOT a component of the 2016 Social Security reform proposal by Democratic lawmakers? O a. an increase in minimum benefits to 25% above the poverty line b. an increase in benefits by 2% for all recipients O c. a more generous cost-of-living adjustment O d. lower payroll taxes
1. An economy's Lorenz Curve reveals that an economy's highest income quintile has 65% of the economy's income while the lowest income quintile only has 5% of the economy's income. Solely based on the Lorenz Curve, is this distribution of income fair? Why or why not? 2. To combat income inequality and to generate increased tax revenues to fund expenditures, government officials decide to aggressively increase how progressive income taxes are, so much so that the top income earners are marginally taxed 90% of their income (and while this marginal tax rate may seem oppressive, these top income earners still have more than enough income to satisfy all of their needs and all but the most extravagant of wants - basically, these earners have more than enough money). Argue why this tax policy is a fair approach to fund government expenditures. Why might this tax policy fail to achieve its objectives (tax revenues would actually decline as a result)?
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When Ann's income increased from $100,000 to $120,000, her income tax payment increased from $22,000 to $30,000. Ann's average tax rate is and her marginal tax rate is A. 25 percent; 25 percent B. 40 percent; 25 percent C. 40 percent; 40 percent D. 25 percent; 40 percent
economic
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Cumulative Percent of Income 100 90- 80 70 60 50 40 30 20 10 10 20 All HATB TA 30 40 50 60 70 Cumulative Percent of the Population 80 I 90 100
The following question has 4 parts (a.-d.), parts b. to d. will be revealed after submitting your answer by hitting "Verify" on the preceding sections. Suppose an economy is composed of 10 individuals. The following table shows their annual income in thousands of dollars. Individual Individual 1 Individual 2 Individual 3 Individual 4 Individual 5 Individual 6 Individual 7 Individual 8 Individual 9 Individual 10 Income 46 80 96 33 74 54 48 28 83 10
8. Factors that influence standard of living Which of the following government policies is least likely to increase the standard of living in the United States? O Investment in technology Raising the minimum wage paid to workers O Investment in education and skills training for workers O Investment in tools and capital for workers