An Equal Distribution of Income Would Yield a Lorenz Curve

question 91

Multiple Choice

An equal distribution of income would yield a Lorenz curve that is a

• A) line lying directly on the horizontal axis.
• B) line lying directly on the vertical axis at 0%.
• C) 45-degree line between 0 and 100%.
• D) line lying directly on the vertical axis at 100%.

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Definitions:

Accounting Records

Accounting Records are documents and ledgers that capture all financial transactions of an entity, serving as a basis for financial statements and audit.

Capital Balance

The amount of money that owners have invested in a firm minus any withdrawals made by the owners.

Capital Balance

The capital balance in a company's equity section represents the owner's investment, adjusted for withdrawals and profits or losses.

Withdraws

Money taken out from a business by its owners for personal use.