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Utari Natania
on Nov 26, 2024

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A progressive income tax would cause the after-tax Lorenz curve, compared with the before-tax Lorenz curve, to be

A) more bowed toward the southeast.
B) less bowed toward the southeast.
C) a vertical line.
D) a horizontal line.

Progressive Income Tax

A tax system where the tax rate increases as the taxable income of the taxpayer increases, aiming at a more equitable distribution of wealth.

After-Tax Lorenz Curve

A graphical representation that shows the distribution of income or wealth within an economy after accounting for taxes.

Before-Tax Lorenz Curve

A graphical representation that shows the distribution of income or wealth among individuals or households before taxes are applied.

  • Understand the effects of taxes and transfers on income distribution and inequality.
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Micaiah WilsonNov 28, 2024
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