Question

Based on the concentration curves below, and given that this is a country with high income inequality, how
would you classify targeting of spending on these two social services in this hypothetical country? What can
you say about the magnitude of the concentration coefficients for social service A and social service B?
If you were informed that this was a developing country and that these two services refer to primary
healthcare and hospital-level healthcare respectively, which would you guess is primary healthcare and
which is hospital-level healthcare? Briefly substantiate.