In an Effort to Make the Distribution of Income More

question 14

Multiple Choice

In an effort to make the distribution of income more nearly equal, the government of a country passes a tax law that changes the Lorenz curve from for 2004 to for 2005. Find the Gini coefficient of income for both years. Round your answer to six decimal places. ​

• A) 2004: 0.331754 2005: 0.234910
• B) 2004: 0.434783 2005: 0.316194
• C) 2004: 0.268199 2005: 0.186871
• D) 2004: 0.225080 2005: 0.155144
• E) 2004: 0.630631 2005: 0.483492

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Definitions:

Industrial Unions

Industrial unions are trade unions that represent all workers, skilled and unskilled, within a particular industry.

Blue-Collar

Refers to employees who perform manual labor or are engaged in trade and craft activities, often involving physical work.

Government Occupations

Jobs that are provided by and exist within the governmental sector, including local, state, and federal positions.

Collective Bargaining

The negotiation process between employers and a group of employees aimed at establishing salaries, working conditions, and other terms of employment.