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

Short-run costs — practice question

The diagram presents the Lorenz curves for Norway (N) and India (I). What conclusions can be drawn by comparing the Lorenz curves?

  • AIndia is more likely to have lower indirect taxes and a public sector education system than Norway.
  • BIndia is more likely to have a progressive income tax system and means tested benefits than Norway.
  • CNorway is more likely to have a progressive tax system and public sector pensions than India.
  • DNorway is likely to have a higher percentage of tax generated from indirect taxes and privately funded pensions than India.

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