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In an economy the social benefit contribution of the employees is 20 % of their income. The system of personal income tax looks as follows:

In an economy the social benefit contribution of the employees is 20 % of their income. The

system of personal income tax looks as follows: taxpayers have to pay 20% of their current

income, but if they reach the 50 income limit the part of their income above that level is charged

by 40%. Everybody gets social transfer from the government to complete their disposable

income to 20 units. The distribution of income looks as follows:

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a) Determine the disposable incomes of the income categories!

b) Determine the gross revenue of the government from taxes and contributions!

c) Determine the total social transfer payment of the government!

d) Determine the change of the income concentration!

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