The $1.4 billion trick to make us accept income inequality
Lotteries take money from the poor and redistribute it unequally. The poor, the uneducated, and minorities play the lottery the most, and it takes a big chunk of their income.
Source: The Huffington Post, January 12, 2016
If the news clip is correct, how does a lottery change the distribution of income? Draw two Lorenz curves to illustrate your
answer.
Lotteries result in the distribution of income
Draw the Lorenz curve in a country that does not have lotteries. Label it Before.
Draw the Lorenz curve for the country after the introduction of lotteries. Label it After.
>>> To reposition the label click on the cross by the label box and dragging it.
Lotteries result in the distribution of income
Draw the Lorenz curve in a country that does Draw the Lorenz curve for the country after th >>> To reposition the label click on the cross
becoming more equal
becoming more unequal
remaining unchanged
fter.
Cumulative percentage of income
Q
100-
Q
80-
60-
40-
20-
0
20
40
60
80
100
E
Cumulative percentage of households
>>> Draw only the objects specified in the question.