1.Refer to the table below. Represent the two countries' Lorenz curves and explain the main findings with respect to inequality and income distribution.

a.Label each part of the diagrams and explain the meaning of the various components

b.What problems are associated with high levels of inequality in a society? Discuss using references from the study material if appropriate.

% of Total Money Income Received

Country A Country B

Fraction of total households

Poorest fifth 3 15

Second fifth 10 15

Third fifth 22 15

Fourth fifth 26 25

Richest fifth 39 30