If a Nation's Lorenz Curve Lies on the 45 Degree

question 14

Multiple Choice

If a nation's Lorenz curve lies on the 45 degree line of income equality, then

• A) more of the nation's income is received by the lowest 20 percent of families than by the highest 20 percent.
• B) income is unequally distributed.
• C) more of the nation's income is received by the highest 20 percent of families than by the lowest percent.
• D) the income received by each 20 percent of families is 20 percent of the total income.

---

Definitions:

Clean Audit Opinion

An auditor's report that states financial statements of a company are free from material misstatement and are presented fairly in accordance with the applicable financial reporting framework.

Unmodified Opinion

An auditor's report that concludes the financial statements of an entity present fairly its financial position, without any reservations.

Management Discussion and Analysis

A section in an annual report where management provides an overview of the previous period's operations, current financial status and future outlook.

Dividends per Share

The amount of money a company pays out to its shareholders for each share they own during a specific period.