The Figure Given Below Shows the Lorenz Curves of Two

question 21

Multiple Choice

The figure given below shows the Lorenz curves of two countries (Country A and Country B) .Figure 19.2
Total income (cumulative percentage)
Total population (cumuative percentage)

-Refer to Figure 19.2 and identify the correct statement.

• A)The top 10 percent of the population in Country B receive 20 percent of the national income.
• B)The top 10 percent of the population in Country A receive 70 percent of the national income.
• C)Country A has a greater degree of income inequality than Country B.
• D)The bottom 90 percent of the population in Country B receive 90 percent of the national income.
• E)The poorest 20 percent of the population in Country A receive 10 percent of the national income.

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Definitions:

Factory Overhead

All manufacturing costs that are not directly related to the production of goods, including costs associated with operating the factory.

Overhead Costs

Fixed and variable costs incurred in the operation of a business that do not directly contribute to the production of goods or services.

Individual Processes

Refers to the distinct and separate steps or stages involved in the production or execution of a service or product.

Physical Products

Tangible items that can be bought, sold, or traded, often contrasted with digital goods or services.