The Lorenz Curve Maps

question 133

Multiple Choice

The Lorenz curve maps:

• A)the cumulative percentage of the population against the cumulative percentage of income earned.
• B)each quintile of the population in order of income earned against the average income earned.
• C)GDP per capita against what people really earn by quintile.
• D)None of these are true.

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Definitions:

Credit Customer

A customer who purchases goods or services on credit, agreeing to pay the seller at a later date.

Accounts Receivable

The money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Credit to Cash

A transfer or accounting entry that increases the cash balance while simultaneously increasing a corresponding credit account.

Art Studio

A creative space where artists create, display, and sometimes sell their artworks.