The Figure Given Below Shows the Lorenz Curves of Two

question 92

Multiple Choice

The figure given below shows the Lorenz curves of two countries (Country A and Country B) . Figure 19.2
Total income (cumulative percentage) Total population (cumuative percentage)
-In Figure 19.2,the poorest 60 percent of the population in Country B receive:

• A)30 percent of the national income.
• B)40 percent of the national income.
• C)60 percent of the national income.
• D)20 percent of the national income.
• E)10 percent of the national income.

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Definitions:

Current Value

The present worth of an asset or company based on market conditions, differing from historical costs or book value.

End of the First Year

The completion of the first 12-month period of an event or operation, typically used in financial contexts.

Risk Premium

The additional return expected by an investor for holding a risky asset over a risk-free one, compensating for the higher risk.

Equity Investing

The act of purchasing shares of stock in companies with the expectation of earning dividends or selling the shares at a higher price in the future.