The table above shows the distribution of income in Swacko. The government of Swacko imposes a 20 percent tax on 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. After the redistribution, the Lorenz curve for income ________. A) is equal to the line of equality
B) equals the Lorenz curve for wealth
C) is closer to the line of equality
D) is above the line of equality
C
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If the real wage rises
A) firms will hire less labor. B) firms will hire additional labor. C) the marginal cost of labor falls. D) the marginal benefit of the worker increases.
Wealthy professors are more likely to shop at high end stores with shorter wait times at the cashier than poor students because
a. They value the item more than the student b. They like wasting money c. The opportunity cost of waiting in a cashier line is higher for professors than for undergraduate students d. They like to show off