Figure 15-2 According to the Lorenz Curve Shown in Figure 15-2, What

question 28

Multiple Choice

Figure 15-2
According to the Lorenz curve shown in Figure 15-2, what percentage of total income is earned by the richest 20 percent of families?

• A) 20 percent.
• B) 40 percent.
• C) 60 percent.
• D) 80 percent.

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Definitions:

Indemnify

To compensate for loss or damage, or to guarantee protection against future losses.

Void Ab Initio

Describes a contract or agreement that is considered null from its inception, meaning it never had legal validity.

Insurable Interest

A stake in the value of an entity or event for which an insurance policy may be obtained to cover losses.

Insurance Contract

A legally binding agreement between an insurer and an insured, where the insurer promises to pay benefits for specific potential future losses in exchange for premiums paid by the insured.