The Larger the Gap Between the Lorenz Curve and the Line

question 89

Multiple Choice

The larger the gap between the Lorenz curve and the line of equality,

• A)the greater is the equality in the income distribution.
• B)the less is the inequality in the income distribution.
• C)the poorer are the top 50 percent of households.
• D)the richer are the lowest 50 percent of households.
• E)the greater is the inequality in the income distribution.

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Definitions:

Dividends Per Share

A measure indicating the amount of dividend a company pays out to its shareholders per share of stock, reflecting the return on investment for shareholders.

No-Par Common Stock

Refers to shares issued without a par value, meaning their value is not set in the company's articles of incorporation.

Journal Entries

The method by which financial transactions are recorded in a company's accounting records in chronological order.

Cash

Liquid funds available for use in immediate transactions, held either in hand or in bank accounts.