Author Question: The U.S. tax system A) reduces inequality and shifts the Lorenz curve away from the line of ... (Read 38 times)

OSWALD · **on:** Jun 29, 2018

The U.S. tax system

A) reduces inequality and shifts the Lorenz curve away from the line of equality.
B) reduces inequality and shifts the Lorenz curve toward the line of equality.
C) increases inequality and shifts the Lorenz curve toward the line of equality.
D) increases inequality and shifts the Lorenz curve away from the line of equality.

Question 2

The table above provides information about the marginal private benefit for education.

The marginal private cost, which also equals the marginal social cost, of educating a student is 16,000 per year and does not change as more students are educated. There is an external benefit from education that is equal to 12,000 per student year and does not change as more students are educated. What is the efficient amount of education? A) 40,000 student-years
B) 60,000 student-years
C) 80,000 student-years
D) 100,000 student-years