The Diagonal Line on a Lorenz Curve Diagram Represents

question 45

Multiple Choice

The diagonal line on a Lorenz curve diagram represents

• A)the degree of inequality in the distribution of income.
• B)the percentage of income received by the bottom 50% of families.
• C)the dollar incomes of the bottom 50% of families.
• D)the percentage of income received by the top 50% of families.
• E)where the Lorenz curve would be if there were complete income equality.

---

Definitions:

Safety Inventory

Additional stock that is maintained to act as a safeguard against supply and demand uncertainties, ensuring product availability.

Holding Cost

The expenses incurred to store inventory, including warehousing, insurance, and depreciation, until the goods are sold or used.

Vidalia Onions

A sweet variety of onion grown exclusively in a specified region of Georgia, known for its unique taste.

Transit Time

The duration it takes for goods or materials to be transported from one point to another.