Figure 18-7 100 Income (cumulative percent) 80 72 60 48 40 28 20 12 0 20 40 60 80 Households (cumulative percent) Figure 18-7 shows the Lorenz curve for a hypothetical country. 100 Refer to Figure 18-7. The second highest 20 percent of households O earn 42 percent of the society's total income. O earn 28 percent of the society's total income. earn 72.percent of the society's total income. earn 24 percent of the society's total income.

Figure 18-7 100 Income (cumulative percent) 80 72 60 48 40 28 20 12 0 20 40 60 80 Households (cumulative percent) Figure 18-7 shows the Lorenz curve for a hypothetical country. 100 Refer to Figure 18-7. The second highest 20 percent of households O earn 42 percent of the society's total income. O earn 28 percent of the society's total income. earn 72.percent of the society's total income. earn 24 percent of the society's total income.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The Lorenz curve for Bangladesh looks like this: Cumulative percentage of income 100 58.7 37.4 21.3 8.9 Bangladesh Lorenz Curve 20 60 80 Cumulative percentage of population 40 100 04 How much income do individuals in the second income quintile in Bangladesh receive?
5
Using the above Lorenz Curve, if Economy A decreased the progressivity of income taxes, then Economy A's Lorenz Curve would shift closer to the 45-degree reference line. shift closer to Economy B's Lorenz Curve. not shift at all
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