Suppose Income Was Equally Distributed Across All Families, Then

question 40

Multiple Choice

Suppose income was equally distributed across all families, then:

• A)60 per cent of the families would receive exactly 60 per cent of the income
• B)the relative share of income would decline as the number of families are increased
• C)the relative share of income would increase as the number of families are increased
• D)all families would more likely be rich than poor

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Definitions:

Legal Life

The duration for which an asset is legally permitted to be used or the period a legal agreement is effective.

Amortized

The process of gradually reducing a debt through periodic payments of principal and interest over a set term.

Ordinary Repairs

Expenditures for routine maintenance and upkeep of assets, charged as expenses to ensure the operational efficiency of an asset.

Plant Asset

Plant asset refers to long-term tangible property, plant, and equipment that a company uses in the production of its goods and services.