Concept explainers
Income distribution. The government of a small country is planning sweeping changes in the tax structure in order to provide a more equitable distribution of income. The Lorenz curves for the current income distribution and for the projected income distribution after enactment of the tax changes are as follows:
Find the Gini index of income concentration for each Lorenz curve. Will the proposed changes provide a more equitable income distribution? Explain.
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Calculus for Business, Economics, Life Sciences, and Social Sciences (14th Edition)
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