Answered: Lorenz Curve would shift closer to the…

Lorenz Curve would shift closer to the 45-degree reference line. shift closer to Economy B's Lorenz Curve. not shift at all

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

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

Total Income (cumulativo parcontags)
100
80
9
23.
BO
Total Population (cumulative percentage
20
09
C
7:00

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