Suppose there is a high inequality in household income between the highest and the lowest income groups in one country. In response, the government raises the income tax for the highest income group and provides subsidies to the lowest-income group
What would happen to the Lorenz curve as a result of the government programs? Explain.
The government tax and subsidy policies would not change the Lorenz curve because it does not account for the income tax and income in kind provided by the government.
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Mutual funds that attempt to mimic the performance of a broad market index, such as the Dow Jones Industrial Average, are known as:
a. socially responsible funds. b. index funds. c. equity funds. d. fixed-income funds. e. money market funds.
Which of the following statements is not consistent with the "environmental explanation" of wage and productivity?
a. "Women are more likely than men to leave the labor force to care for children and hence acquire less work experience than do men." b. "Blacks and other minorities do not receive, on average, the same quality of education as whites." c. "Boys are more likely than girls to receive moral and financial support from their families to attend college." d. "Employers discriminate systematically against blacks and women."