Homework Help is Here – Start Your Trial Now!
Business
Economics
The table shows the distribution of market income in an economy and the income after tax and benefits Households Lowest 20 percent Second 20 percent Thad 20 percent Fourth 20 percent Highest 20 percent Market income millions of dollars) 5 10 20 25 Income after tax and benefits 40 13 14 16 20 27 Draw the Lorenz curve for income before taxes and benefits. Pass the curve through the points when the cumulative percentages of households are 0,40, 80, and 100 percent. Draw a point to show the cumulative percentage of income received by the lowest 80 percent of households Label it Before. Draw the Lorenz curve for income after taxes and benefits. Pass the curve through the point when the cumulative percentages of households are 0, 40, 80, 100 percent Draw a point to show the cumulative percentage of income received by the lowest 80 percent of households Label it After 2001 904 BO 704 00- 504 404 30 Cumulative percentage of income equally 30 30 30 40 50 60 70000 100 Cumdave percentage of households Draw only the objects specited in the question ROO

The table shows the distribution of market income in an economy and the income after tax and benefits Households Lowest 20 percent Second 20 percent Thad 20 percent Fourth 20 percent Highest 20 percent Market income millions of dollars) 5 10 20 25 Income after tax and benefits 40 13 14 16 20 27 Draw the Lorenz curve for income before taxes and benefits. Pass the curve through the points when the cumulative percentages of households are 0,40, 80, and 100 percent. Draw a point to show the cumulative percentage of income received by the lowest 80 percent of households Label it Before. Draw the Lorenz curve for income after taxes and benefits. Pass the curve through the point when the cumulative percentages of households are 0, 40, 80, 100 percent Draw a point to show the cumulative percentage of income received by the lowest 80 percent of households Label it After 2001 904 BO 704 00- 504 404 30 Cumulative percentage of income equally 30 30 30 40 50 60 70000 100 Cumdave percentage of households Draw only the objects specited in the question ROO

Microeconomics: Principles & Policy
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter20: Poverty, Inequality, And Discrimination
Section: Chapter Questions
Problem 5DQ
See similar textbooks
icon
Related questions
Question

I dont understand how to calculate and graph the second curve for income after taxes and benefits.

Note:-

  • Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
  • Answer completely.
  • You will get up vote for sure.
The table shows the distribution of market income in an economy and the income after tax and benefits Households Lowest 20 percent Second 20 percent Third 20 percent Fourth 20 percent Highest 20 percent Market income Income after tax and benefits (millions of dollars) 5 10 20 25 40 13 14 16 20 27 Draw the Lorenz curve for income before taxes and benefits. Pass the curve through the points when the cumulative percentages of households are 0, 40, 80, and 100 percent. Draw a point to show the cumulative percentage of income received by the lowest 80 percent of households. Label it Before. Draw the Lorenz curve for income after taxes and benefits. Pass the curve through the point when the cumulative percentages of households are 0, 40, 80, 100 percent Draw a point to show the cumulative percentage of income received by the lowest 80 percent of households. Label it After 200 904 80+ 70 00- 50 404 30 204 104 Cumulative percentage of income Line of equally 630 20 30 40 50 60 20 000 200 Cumadative percentage of households Draw only the objects specited in the question SSE C
Transcribed Image Text:The table shows the distribution of market income in an economy and the income after tax and benefits Households Lowest 20 percent Second 20 percent Third 20 percent Fourth 20 percent Highest 20 percent Market income Income after tax and benefits (millions of dollars) 5 10 20 25 40 13 14 16 20 27 Draw the Lorenz curve for income before taxes and benefits. Pass the curve through the points when the cumulative percentages of households are 0, 40, 80, and 100 percent. Draw a point to show the cumulative percentage of income received by the lowest 80 percent of households. Label it Before. Draw the Lorenz curve for income after taxes and benefits. Pass the curve through the point when the cumulative percentages of households are 0, 40, 80, 100 percent Draw a point to show the cumulative percentage of income received by the lowest 80 percent of households. Label it After 200 904 80+ 70 00- 50 404 30 204 104 Cumulative percentage of income Line of equally 630 20 30 40 50 60 20 000 200 Cumadative percentage of households Draw only the objects specited in the question SSE C
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Progressive Tax
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Microeconomics: Principles & Policy
Microeconomics: Principles & Policy
Economics
ISBN:
9781337794992
Author:
William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:
Cengage Learning
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Principles of Microeconomics (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:
9781305971493
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou…
Principles of Economics, 7th Edition (MindTap Cou…
Economics
ISBN:
9781285165875
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Microeconomics
Principles of Microeconomics
Economics
ISBN:
9781305156050
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS