A Lorenz Curve Shows The:​

question 112

Multiple Choice

A Lorenz curve shows the:​

• A)functional distribution of income.
• B)personal distribution of income.
• C)relative percentage of income going to each of the resources used in the production process.
• D)demand for unskilled versus unskilled labor in an economy.
• E)cumulative percentages of income received by cumulative percentages of households.

Appreciate the challenges and criticisms associated with the federal budget process.

Understand the concept of entitlement programs and their role in federal outlays.

Understand the concept of Net Present Value (NPV) and its relation to the cost of capital.

Comprehend the Internal Rate of Return (IRR) and how it's used in project evaluation.

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Definitions:

Financial Break-Even

The point at which total revenue exactly covers total costs, leaving no profit or loss.

Financial Basis

The underlying value or cost used for tax purposes, to calculate capital gain or loss upon the sale of an asset, including adjustments for improvements, depreciation, and costs of sale.

Pay Back

The process of returning or repaying borrowed funds, especially the principle amount of a loan.

Accounting Break-Even

The point at which total costs and total revenues are exactly equal, resulting in neither profit nor loss.