The table shows after-tax income shares in Canada in 1986. Households After-tax income (quin) (percent of total) Lowest 5.5 Second 11.4 Thind 17.6 Fourth 24.7 40.8 6. The graph shows the market for low-skilled labour Wage rates per hour) 20 16 12 Highest Draw a Lorenz curve for Canada in 1986 and compare it with the Lorenz curve in 2018 shown in Fig. 18.3 on p. 425.

b. Was Canadian after-tax income distributed more equally or less equally in 2018 than it was in 19862 Inequality in the World Economy (Study Plan 18.2) 3 Incomes in China and India are a small fraction of incomes in Canada. But incomes in China and India are growing at more than twice the rate of those in Canada.

a. Explain how economic inequality in China and India is changing relative to that in Canada.

b. Explain how the world Lorenz curve and world Gini ratio are changing. Use the following table to work Problems