Friday, April 23, 2010

42. Lorenz Curve

This graph is also known as the Laffer Curve, an economic representation of how taxation will benefit a country. In this graph, if taxes are too low no profit will be made and the same for if they are too high. However, if they tax moderately, the most profit will be a result. This is an example of a Lorenz curve. The curve represents the actual distribution of profit.

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