The Lorenz Curve for a Country with Perfect Income Equality

question 24

True/False

The Lorenz curve for a country with perfect income equality is a horizontal line.

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Definitions:

Tax Year

A 12-month period used for tax purposes, determining the timeframe over which income, deductions, and tax payments are calculated and reported.

Realize

To convert assets into cash or to acknowledge revenue or a profit in accounts.

Gains And Losses

The increase or decrease in an investment's value, respectively, often realized upon selling or valuing the investment at market price.

DAX-30 Index Futures

Futures contracts that speculate on the future value of the DAX, a stock index of 30 major German companies trading on the Frankfurt Stock Exchange.