Given the Data in the Table Below,draw the Lorenz Curve

question 51

Essay

Given the data in the table below,draw the Lorenz curve before and after an income tax.Is this tax progressive or regressive?

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Definitions:

Statement of Stockholders' Equity

A financial document that shows changes in the value of shareholders' equity in the company over a specific period.

Common Stock

A type of equity security that represents ownership in a corporation, granting holders voting rights and a share in the company's profits via dividends.

Retained Earnings

Profits generated by a company that are not distributed to shareholders as dividends but are instead reinvested in the business or held for future use.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets over its current liabilities.