-The Table Above Shows the Distribution of Income in Swacko

question 105

Multiple Choice

-The table above shows the distribution of income in Swacko. The government of Swacko imposes a 20 percent tax on the people with the highest 40 percent of income. The government then distributes 50 percent of the tax collected to the lowest 20 percent and 25 percent to the second 20 percent and the middle 20 percent. Suppose that the before-tax group incomes remain as above. Before and after the distribution, what percentage of national income belongs to the lowest 20 percent?

• A) 2 percent; 10 percent
• B) 20 percent; 20 percent
• C) 5 percent; 25 percent
• D) 2 percent; 2 percent

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Definitions:

Immediate Environment

The physical and social setting in which individuals find themselves at a given time, affecting their experiences and behavior.

Competition

The rivalry between businesses or individuals aiming to achieve goals such as higher sales, market share, or recognition.

Corporate Partners

Businesses that collaborate or form alliances for mutual benefit or to achieve specific objectives.

Focal Company

The primary business within a larger supply chain or network, which drives the strategic decisions and partnerships.