Cumulative percentage of weath 100 (d) 80 60 40 20 20 40 60 80 100 Cumulative percentage of households FIGURE 3 6 Figure 3 shows the Lorenz curve for wealth for a nation. If the government were to confiscate all of the wealth from the poorest twenty percent of the population and give it to the wealthiest twenty percent, the Lorenz curve would: (a) shift farther away from the line of equality: (b) shift closer to the line of equality; (c) shift away from the line of equality in one section of the curve and shift closer to the line of equality in another section of the curve; flin nhoun the line of oqualit
Cumulative percentage of weath 100 (d) 80 60 40 20 20 40 60 80 100 Cumulative percentage of households FIGURE 3 6 Figure 3 shows the Lorenz curve for wealth for a nation. If the government were to confiscate all of the wealth from the poorest twenty percent of the population and give it to the wealthiest twenty percent, the Lorenz curve would: (a) shift farther away from the line of equality: (b) shift closer to the line of equality; (c) shift away from the line of equality in one section of the curve and shift closer to the line of equality in another section of the curve; flin nhoun the line of oqualit
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter12: Income Distribution, Poverty, And Discrimination
Section: Chapter Questions
Problem 17SQ
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Transcribed Image Text:6
7
8
Cumulative percentage of wealth
100
80
60
40
20
5
20
40
60
80
100
Cumulative percentage of households
FIGURE 3
Figure 3 shows the Lorenz curve for wealth for a nation. If the government were to
confiscate all of the wealth from the poorest twenty percent of the population and
give it to the wealthiest twenty percent, the Lorenz curve would:
shift farther away from the line of equality:
shift closer to the line of equality;
(a)
(b)
(c)
shift away from the line of equality in one section of the curve and shift
closer to the line of equality in another section of the curve;
flip above the line of equality.
(d)
Page 4 of 11
A positive production externality will cause a private perfectly competitive market
to produce:
(a) less than is socially desirable;
(b) more than is socially desirable;
(c) more than the market equilibrium;
(d) less than the market equilibrium.
ECO1015/January 2020
Both public goods and common resources are:
(a) rival;
(b) not rival;
(c) excludable;
(d) not excludable.
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