Unit 4- Assignment 3-Problem 1


Answers:

  1. This would increase access to higher education and therefore the economic opportunities available to all citizens. The Lorenz curve would shift inward, toward the reference line.
  2. There would be more income inequality than presently exists. There is a certain redistributive effect from the current progressively structured income tax system. Some individuals support this approach and others don't. In any event, the result would be to shift the Lorenz curve to the right, further away from the reference line.
  3. Economic opportunity in the labor force would now be more equal. The Lorenz curve would shift inward, toward the reference line.











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