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

question 9

Multiple Choice

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

-(Exhibit: Income Distribution) Curve B:

• A) is called a Lorenz curve.
• B) shows that the lowest 20% of the families gets 60% of the income.
• C) shows that 60 percent of the families get 40 percent of the income.
• D) shows an equal distribution of income.

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Definitions:

Trade Discount

A reduction in the list price granted by a supplier to a buyer from the trading sector, based on the volume of goods purchased or as a promotional strategy.

Government Agencies

Official organizations established by a government to perform specific functions or services in accordance with legal mandates.

Large Quantities

Refers to the production or acquisition of goods in bulk or significant volumes, often to achieve economies of scale.

Multiple-step Income Statement

A detailed financial statement that separates operating revenues and expenses from non-operating ones to calculate net income.