The table given below shows the absolute tax amounts under five different tax policies for respective income levels.Table 19.2

-If everyone in an economy had equal income, the Lorenz curve would be a curve that intersects the line of income equality at the point at which 50 percent of the population earns 50 percent of the income.

Question

The table given below shows the absolute tax amounts under five different tax policies for respective income levels.Table 19.2
 
-If everyone in an economy had equal income, the Lorenz curve would be a curve that intersects the line of income equality at the point at which 50 percent of the population earns 50 percent of the income.

Quizplus · Accepted Answer

If everyone in an economy had equal income, the Lorenz curve would be a straight line along the line of income equality, indicating that each portion of the population earns an exactly proportional share of the total income.

The Table Given Below Shows the Absolute Tax Amounts Under