The most important income distribution decisions t

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The Lorenz curve is a relative measure of income. This becomes obvious when one compares Lorenz curves between nations.  The after-transfer income distribution is the Lorenz curve closest to the diagonal line. Since transfers favor the poor, they cause greater equality and move the Lorenz curve toward the diagonal line.   Why does the most important income distribution decisions that the government makes involve establishing and protecting property rights?

Reference no: EM131021241

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