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Income distribution in a certain economy is given by a cumulative probability distrib- ution F. Suppose a policy is enacted such that the new distribution

Income distribution in a certain economy is given by a cumulative probability distrib- ution F. Suppose a policy is enacted such that the new distribution of income is given by G. Care was taken so that the mean income under both F and G are the same.Pick the correct choice to fill in the blanks and make the following a true statement:

G will Lorenz dominate F and result in ? Average Poverty Index if and only if G ? scholastically dominates F.

a. lower and second order

b. lower and first order

c. higher and second order

d. higher and first order

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