Economics (AS & A Level) · May / June 2023 · Paper 33 · Question 16

The diagram shows the Lorenz curves for Norway (N) and India (I). [diagram: Lorenz curves with axes 'cumulative percentage of households' and 'cumulative percentage of income', line of perfect equality, curves labelled N and I] What can be concluded from a comparison of the Lorenz curves?

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

As printed in the paper