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Question 3 Suppose income x is a function of ability a, as follows: x = a + ba where a,b > 0. a is uniformly
Question 3 Suppose income x is a function of ability a, as follows: x = a + ba where a,b > 0. a is uniformly distributed in the unit interval.Note that inequality is increasing with b. A fraction 1 of income is taxed and a fraction
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