If Income Is Distributed Equally,the

question 114

Multiple Choice

If income is distributed equally,the

• A)Lorenz curve is a straight line.
• B)Line of equality sags below the Lorenz curve.
• C)Lorenz curve sags below the line of equality.

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Definitions:

Total Liabilities

The total amount of all financial obligations a company owes to external parties.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the owner’s claim on the business assets.

Period's Change

The difference in a specific financial indicator or performance measure from one established period to the next.

Liabilities

Obligations owed by a company to third parties, such as loans, accounts payable, or mortgages, expected to be paid or settled.