The Lorenz Curve Uses the

question 245

Multiple Choice

The Lorenz curve uses the

• A) functional distribution of income.
• B) personal distribution of income.
• C) distribution of the gross domestic product.
• D) household production function.

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Definitions:

Financial Leverage

The employment of loaned funds to boost the prospective earnings of an investment.

EBIT

A profitability metric that disregards interest and income tax expenditures, known as Earnings Before Interest and Taxes.

ROE

Return On Equity; a measure of a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

Debt

An amount of money borrowed by one party from another, often used by companies and governments to finance projects and operations.