3. On the grid below, plot 3 different Lorenz curves for three different imaginary towns described below. A. Socialist Utopia: All income is split evenly between all members of the town. B. Capitalist Society: Everyone in the town makes some money, but the income is not equally dis- tributed. The income each person makes depends on the type of work they do. C. Tyranny: Only one person in the town makes all the money. No one else makes any money. Please label the three curves clearly as A, B, C. 1.0 y = L(z) 0.8 0.6 0.4 0.2 0 0.2 0.4 0.6 0.8 1.0

3. On the grid below, plot 3 different Lorenz curves for three different imaginary towns described below. A. Socialist Utopia: All income is split evenly between all members of the town. B. Capitalist Society: Everyone in the town makes some money, but the income is not equally dis- tributed. The income each person makes depends on the type of work they do. C. Tyranny: Only one person in the town makes all the money. No one else makes any money. Please label the three curves clearly as A, B, C. 1.0 y = L(z) 0.8 0.6 0.4 0.2 0 0.2 0.4 0.6 0.8 1.0

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter1: Ten Principles Of Economics

Section: Chapter Questions

Problem 8PA

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