The Gini Coefficient Can Be Calculated by Measuring the Area

question 7

Multiple Choice

The Gini coefficient can be calculated by measuring the area

• A) between the Lorenz curve and the line of perfect equality,divided by the area under the line of perfect equality.
• B) under the Lorenz curve,divided the area under the line of perfect equality.
• C) under the line of perfect equality,divided by the area under the Lorenz curve.
• D) under the line of perfect equality,divided by the area above the Lorenz curve.
• E) above the line of perfect equality,divided by the area under the Lorenz curve.

---

Definitions:

Depreciation Expense

The allocated amount of the cost of a tangible or physical asset over its useful life.

Useful Life

The estimated period over which it is expected that an asset will be profitable or useful to its owner.

Units-Of-Activity

A depreciation method that allocates the cost of an asset over its useful life based on its actual usage or activity level.

Factory Machinery

Refers to the physical equipment used in the production process within a manufacturing facility.