Gross incomes are less unequal than original incomes

Final incomes are less unequal than disposable incomes

) A curve which plots a cumulative percentage of income against a cumulative percentage of households is called a Lorenz curve

If we compare the distribution of two incomes, the one with the lower Gini coefficient is the more unequal

A rise in the State Pension

A ceiling on the number of hours that people were allowed to work each week

A policy to encourage more low income households to buy shares in companies

An effective policy to reduce bankers’ bonuses

People living longer

A rise in the demand for unskilled labour

Lower occupational pensions in many jobs

A rise in unemployment

Rich people may be altruistic

Rich people may fear that one day in the future they may be poor themselves

Rich people may feel redistribution should be left to voluntary donations

Rich people regard redistribution as a public good

Utilitarians believe the government should aim to maximize total utility

Followers of Rawls believe the government should aim to make the person with the lowest original income as well off as possible

With each tax, the higher the rate, the larger the revenue

A government which pursued complete equality of final incomes might leave everyone on very low incomes