-The Table Above Shows the Distribution of Income in Swacko

Multiple Choice

-The table above shows the distribution of income in Swacko. The government of Swacko imposes a 20 percent tax on people with the highest 40 percent of income. The government then distributes 40 percent of the tax collected to the lowest 20 percent and 30 percent to the second 20 percent and the middle 20 percent. After the redistribution, the Lorenz curve for income

A) is equal to the line of equality.
B) equals the Lorenz curve for wealth.
C) is closer to the line of equality.
D) is above the line of equality.