A Lorenz Curve Is a Geometric Representation of The

question 12

Multiple Choice

A Lorenz curve is a geometric representation of the:

• A) level of income earned by a given family in a given country at a given time.
• B) share distribution of income among families in a given country at a given time.
• C) behavior of income over time.
• D) behavior of income across countries.

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Definitions:

Contribution Margin

The amount by which sales revenue exceeds variable costs; it contributes to covering fixed costs and generating profit.

Variable Categories

Classes or groups of variables in statistics or data analysis that can take on different values and are used to categorize or differentiate data points.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating the amount available to cover fixed costs and generate profit.

Gross Margin

The difference between sales revenue and the cost of goods sold, which represents the profitability of selling goods.