Answer Happy

Cumulative share of income (5) 8882322R22. 100 90 80 30 Mas 20 The following diagram shows the Lorenz curves for market income and disposable income for the Netherlands in 2010. Disposable income is market income minus any taxes and plus any government transfers. A' is the area between the perfect equality line and the disposable income Lorenz curve, while B' is the area under the disposable income Lorenz curve. Based on information, which of the following statements is correct? this Taxes and transfers increase income inequality in the Netherlands. O Before taxes and transfers, the poorest 50% of the population receive 20% or less of the total income. O The Gini coefficient for disposable income is higher than that for market income. O After taxes and transfers, the poorest 50% of the population receive about 20% of the total income. Market Gini coefficient 0.47 Disposable Gini coefficient 0.25 Perfect quality line 4 Disposable income Market income 0 10 20 30 40 50 60 70 80 90 100 Cumulative share of the population from lowest to highest income (%)