The Table Below Shows the Distribution of Market Income in an Economy.The

question 22

Essay

The table below shows the distribution of market income in an economy.The government redistributes income by collecting income taxes and paying benefits shown in the table.
a.Calculate the income shares of each 20 percent of households after tax and redistribution.

b.In the figure below,draw the Lorenz curves for this economy,both before and after taxes and benefits.

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Definitions:

Socioeconomic Status

A measure of an individual's or group's economic and social position relative to others, based on income, education, and occupation.

Cultural Norms

Shared expectations and rules that guide behavior of people within social groups.

Wellness

A holistic approach to health that involves the pursuit of continued growth and balance in the physical, emotional, spiritual, and social aspects of one’s life.

Transtheoretical Model

A theory of behavior change that describes five stages through which individuals progress to alter a behavior permanently.