a. Which plan will increase economic inequality? Explain why.

b. Which plan will reduce economic inequality? Explain why.

c. Which plan will have no effect on economic inequality? Explain why.

Use the following table to work Problems 10 The table shows the distribution of market income in Canada in 2011. Households (quintiles) Market income (percentage of total) Lowest 1.0 Second 7.2 Third 14.6 Fourth 24.9 Highest 52.3 14. The graph shows the market for a group of workers who are discriminated against. Wage rate (dallons per houd 20 16 9.

a. What is the definition of market income?

b. Draw the Lorenz curve for the distribution of market income. 10. Compare the distribution of market income with the distribution of after-tax income shown in Fig 18.3 on p. 425. Which distribution is more unequal and why? Inequality in the World Economy Use the following table to work Problems