The table shows after-tax income shares in Canada in 1986 and 2015. After-tax income After-tax income 1986 2015 (percent of total) Households Lowest 20 percent Second 20 percent Middle 20 percent Fourth 20 percent Highest 20 percent 5 11 18 25 41 7 13 18 23 39 Draw a point to show the income earned by the lowest 20 percent of households in 1986. Draw a point to show the income earned by the lowest 60 percent of households in 1986. Draw a Lorenz curve that is consistent with the two points you've plotted. Canadian after-tax income is distributed equally in 2015 than in 1986. 100 90- 80+ 70- 60- 50+ 40- 30- 20 10- 04 0 Cumulative percentage of income Q 10 20 30 40 50 60 70 80 90 100 Cumulative percentage of households >>> Draw only the objects specified in the question. G
The table shows after-tax income shares in Canada in 1986 and 2015. After-tax income After-tax income 1986 2015 (percent of total) Households Lowest 20 percent Second 20 percent Middle 20 percent Fourth 20 percent Highest 20 percent 5 11 18 25 41 7 13 18 23 39 Draw a point to show the income earned by the lowest 20 percent of households in 1986. Draw a point to show the income earned by the lowest 60 percent of households in 1986. Draw a Lorenz curve that is consistent with the two points you've plotted. Canadian after-tax income is distributed equally in 2015 than in 1986. 100 90- 80+ 70- 60- 50+ 40- 30- 20 10- 04 0 Cumulative percentage of income Q 10 20 30 40 50 60 70 80 90 100 Cumulative percentage of households >>> Draw only the objects specified in the question. G
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![The table shows after-tax income shares in Canada in 1986 and 2015.
After-tax income After-tax income
1986
2015
(percent of total)
Households
Lowest 20 percent
Second 20 percent
Middle 20 percent
Fourth 20 percent
Highest 20 percent
5
11
18
25
41
7
13
18
23
39
Draw a point to show the income earned by the lowest 20 percent of households in 1986.
Draw a point to show the income earned by the lowest 60 percent of households in 1986.
Draw a Lorenz curve that is consistent with the two points you've plotted.
Canadian after-tax income is distributed
equally in 2015 than in 1986.
100-
90-
80-
70-
60+
50-
40-
30+
20-
10-
04
Cumulative percentage of income
10 20 30 40 50 60 70 80 90 100
Cumulative percentage of households
>>> Draw only the objects specified in the question.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F72825ab2-4ab6-4f85-b223-04864e4f0a53%2F48fcbe0e-1880-4dbb-8794-348470444fbb%2Fa8xuyw_processed.png&w=3840&q=75)
Transcribed Image Text:The table shows after-tax income shares in Canada in 1986 and 2015.
After-tax income After-tax income
1986
2015
(percent of total)
Households
Lowest 20 percent
Second 20 percent
Middle 20 percent
Fourth 20 percent
Highest 20 percent
5
11
18
25
41
7
13
18
23
39
Draw a point to show the income earned by the lowest 20 percent of households in 1986.
Draw a point to show the income earned by the lowest 60 percent of households in 1986.
Draw a Lorenz curve that is consistent with the two points you've plotted.
Canadian after-tax income is distributed
equally in 2015 than in 1986.
100-
90-
80-
70-
60+
50-
40-
30+
20-
10-
04
Cumulative percentage of income
10 20 30 40 50 60 70 80 90 100
Cumulative percentage of households
>>> Draw only the objects specified in the question.
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