Which of the Following Would Move the Lorenz Curve Closer

question 114

Multiple Choice

Which of the following would move the Lorenz curve closer to the diagonal?

• A) A 20 percent boost in Social Security retirement benefits.
• B) An increase in payroll taxes.
• C) A reduction in the progressiveness of the federal personal income tax.
• D) The elimination of the TANF program.

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Definitions:

Marginal Costs

The additional cost incurred from producing one more unit of a good or service.

Break Even

The point at which total costs and total revenue are equal, resulting in no net loss or gain for a business.

Selling Price

The amount of money for which a product or service is sold to customers.

Raw Materials

The basic materials from which products are made, typically unprocessed or minimally processed before being used in manufacturing processes.