Economics 9708 · AS & A Level · Short-run costs

Short-run costs — practice question

The diagram displays two Lorenz curves. If the Lorenz curve moves from L1 to L2, which of the following is least likely to have brought this about?

  • ACapital gains tax has been reduced.
  • BIncome tax has been made more progressive.
  • CInheritance tax has been reduced.
  • DThe tax-free allowance has been decreased for everyone.

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