Use the Following to Answer Question(s): Income Distribution

question 12

Multiple Choice

Use the following to answer question(s) : Income Distribution

-(Exhibit: Income Distribution) Curve A represents:

• A) a line of unequal income distribution.
• B) a line of equal distribution of income.
• C) a distribution of income where 20 percent of the families get 60 percent of the income, and 60 percent of the families get 20 percent of the income.
• D) the ideal distribution of income, according to market economists.

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Definitions:

Amortization

The process of gradually paying off debt or spreading the cost of an intangible asset over its useful life.

Depletion Expense

The allocation of the cost of natural resources over the period they are consumed or sold.

Coal Mine

A site for the extraction of coal from the earth, typically involving underground or open-pit operations.

Accumulated Depreciation

The total depreciation for a fixed asset that has been charged to expense since the asset was acquired and made available for use.