In the figure, the poorest 40 percent of all families receive what share of income?

25 percent
20 percent
15 percent
10 percent

In the figure, the three lowest 20 percent of all families receive what share of income?

20 percent
10 percent
5 percent
30 percent

The closer the Lorenz curve for income is to the line of equality, The more ____________ is distributed.

equally income
unequally wealth
unequally income
equally wealth

The government in the country of Zappoo is trying to decide which tax plan to implement. The table shows four alternative plans. If the government decides to implement a progressive income tax, it will implement tax plan ________.

B
D
A
C or B

The government in the country of Zappoo is trying to decide which tax plan to implement. The table shows four alternative plans. If the government decides to implement a proportional income tax, it will implement tax plan ________.

A
D
B
C or B

The guaranteed minimum annual income is $15,000, and the marginal tax rate is 10 percent. A family with a market income of $10,000 will have total income of _______________.

$24,000
$25,000
$15,000
$10,000

The guaranteed minimum annual income is $15,000, and the marginal tax rate is 30 percent. What is the break-even level of income?

$50,000
$21,429
$4,500
$150,000

The table shows the distribution of income in Swacko. The government imposes 20 percent tax on the people with the highest 40 percent of income. The government then distributes 40 percent of the tax collected to the lowest 20 percent and 30 percent to the second 20 percent and the middle 20 percent. Before and after the distribution, what percentage of national income belongs to the middle 20 percent?

10 percent; 14.8 percent
$500,000; $700,000
8 percent; 12.8 percent
10 percent; 10 percent

The table shows the distribution of income in Swacko. The government imposes a 20 percent tax on the people with highest 40 percent of income. The government then distributes 40 percent of the tax collected to the lowest 20 percent and 30 percent to the second 20 percent and the middle 20 percent. After the redistribution, the Lorenz curve for income ___________.

is closer to the line of equality
equals the Lorenz curve for wealth
is above the line of equality
is equal to the line of equality

The distribution of income in Canada is __________________.

skewed with a long tail representing people earning very large incomes
bell-shaped with the median Canadian earning $48,000 per year
skewed with a long tail representing people earning very small incomes
bell-shaped with the median Canadian earning $25,000 per year

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