Exhibit 17-1 the Lorenz Curve Refer to Exhibit 17-1

question 112

Multiple Choice

Exhibit 17-1 The Lorenz Curve Refer to Exhibit 17-1.The 45 degree line in the figure represents:

• A) the line of perfect inequality.
• B) the line of perfect equality.
• C) the nonwage income of households.
• D) the actual distribution of income.

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Definitions:

Market Value

Market value is the current price at which an asset or service can be bought or sold in a marketplace.

Common Stock Dividend Distributable

A liability on the balance sheet representing the amount of dividends declared by a company but not yet paid to shareholders.

Paid-In Capital

Section of stockholders’ equity representing what stockholders have invested into the corporation.