For the highest quintile, the share of market income going to that quintile is

A) higher for after-tax income than for before-tax income.
B) lower for after-tax income than for before-tax income.
C) greater for that quintile for after-tax income when compared to the other quintiles but equal to the other quintiles for before-tax income.
D) equal to the other quintiles for after-tax income but greater for that quintile for before-tax income when compared to the other quintiles.

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Ashley Walczuk · Accepted Answer

Final Answer : B, Explanation :  The highest quintile typically has a larger share of market income before taxes. After taxes, this share is reduced due to progressive tax systems that tax higher incomes at higher rates, thus redistributing income and reducing the share of after-tax income for the highest quintile compared to their share of before-tax income.

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