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:

MasterCard

A global financial services corporation that processes payments between banks of merchants and the card issuing banks for purchases made with credit and debit cards.

VISA

A global payment technology company that facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards and debit cards.

Multiple-Step Income Statement

A form of income statement that contains several sections, subsections, and subtotals.

Income from Operations

The earnings generated from the day-to-day activities of a business, excluding income and expenses from non-operational sources.