During the Decade of the 1980s Our Lorenz Curve

question 122

Multiple Choice

During the decade of the 1980s our Lorenz curve

• A)moved inward,toward the line of perfect equality.
• B)moved outward,away from the line of perfect equality.
• C)stayed about the same distance from the line of perfect equality.
• D)crossed the line of perfect equality.
• E)became the line of perfect equality.

---

Definitions:

Direct Fixed Costs

Costs that relate specifically to a responsibility center and are incurred for the sole benefit of the center.

Variable Costs

Costs that vary directly with the level of production or service delivery, such as materials, labor, and utilities.

Internal Rate Of Return

A financial metric used to evaluate the profitability of investments, representing the interest rate at which the net present value of costs and benefits of a project break even.

Salvage Value

The anticipated salvage value of an asset at the termination of its service life.