The Figure Given Below Shows the Lorenz Curves of Two

question 38

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)

-Why does the census data overstate inequality?

• A)They overestimate the non cash transfers received by the people from the government.
• B)They take into account the after-tax incomes.
• C)They take into account the gifts and transfer receipts from friends and relatives staying abroad.
• D)They do not consider the in-kind transfers received by the people from the government.
• E)They overestimate the medical benefits received by the people from the government.

Assess the strengths and weaknesses associated with sales promotions and direct marketing.

Understand how promotions can be customized to match the specific needs of target markets.

Recognize the role of indirect promotional elements such as publicity in enhancing product or service awareness.

Appreciate the diverse approaches in selecting and balancing the elements of the promotional mix based on the product's life cycle, buyer’s stage, and market conditions.

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Definitions:

Income Summary

An account in the closing process that summarizes revenues and expenses for a period, transferring the net result to owner's equity.

Retained Earnings

The portion of a company's profits not distributed as dividends but reinvested in the business or kept as reserve.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated by dividing current assets by current liabilities.

Permanent Accounts

Balance sheet accounts that carry their ending balances over into the next accounting period, such as assets, liabilities, and equity accounts.