Question: 1. The table shows after-tax income shares in Canada in 1986. a. What is after-tax income? b. Draw a Lorenz curve for Canada in 1986

1. The table shows after-tax income shares in Canada in 1986.

Households After-tax income (percent of total) Lowest 20% 5.5 Second 20% 11.4

a. What is after-tax income?

b. Draw a Lorenz curve for Canada in 1986 and compare it with the Lorenz curve in 2006 shown in Fig. 19.3.

c. Was Canadian after-tax income distributed more equally or less equally in 2006 than it was in 1986?

d. What are some reasons for the differences in the distribution of after-tax income in Canada in 1986 and 2006?

Households After-tax income (percent of total) Lowest 20% 5.5 Second 20% 11.4 Third 20% 17.6 Fourth 20% 24.7 Highest 20% 40.8

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