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

question 87

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.

---

Definitions:

Return on Equity

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested, expressed as a percentage.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing ownership interest in the company.

Gross Margin Percentage

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, demonstrating the efficiency of a company in managing its production costs relative to sales.

Income Statement

A financial document that shows a company's revenues and expenses over a specified period, illustrating how the net revenue of the company is transformed into net income.