As the Area Between the Lorenz Curve and Diagonal Gets

question 35

Multiple Choice

As the area between the Lorenz curve and diagonal gets larger, the Gini ratio

• A) rises to reflect greater equality.
• B) rises to reflect greater inequality.
• C) falls to reflect greater inequality.
• D) falls to reflect greater equality.

---

Definitions:

Operating Capacity

The maximum output a company can produce using its resources efficiently under normal conditions.

Net Fixed Assets

The value of a company’s property, plant, and equipment minus any depreciation that has been accounted for.

Larger Population

A term referring to a broader group of individuals or observations from which a sample is drawn for research purposes.

Sample

A subset selected from a larger population for the purpose of statistical analysis.