The Gini Coefficient Measures

question 16

Multiple Choice

The Gini coefficient measures:

• A)the area under the Lorenz curve
• B)the area above the Lorenz curve
• C)twice the area between the Lorenz curve and the line of equality
• D)half the area between the Lorenz curve and the line of equality

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Definitions:

Operating Revenues

The income earned by a company from its normal business activities.

Operating Expenses

The costs associated with running the core operations of a business that are not directly tied to the production of goods or services, such as rent, utilities, and salaries.

Operating Expenses

Costs incurred in the day-to-day operations of a business, excluding costs related to producing goods or services.

Supplies Expense

The cost associated with materials or goods required to operate a business but not directly tied to the products sold.