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UNIT FOUR (FOR EXAM 4)

Unit Four: Assignment 3: Web Problem U4-A3-P1

In each of the following cases, would the Lorenz curve shift outward (away from the diagonal reference line) or inward (closer to the reference line):

  1. Tuition fees at community colleges and state universities are eliminated.
  2. A proportional or "flat" income tax system is substituted for the current multi-bracket progressively structured income tax system.
  3. All discrimination in the workplace (race, gender, etc.) is eliminated.
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