Figure 18-5

question 92

Multiple Choice

Figure 18-5
Figure 18-5 shows the Lorenz curves for Islandia and Syldavia.
-Refer to Figure 18-5.Which country has the more unequal distribution of income?

• A) Islandia
• B) Syldavia
• C) They may have the same absolute income distribution although their relative income distribution is different.
• D) There is insufficient information to answer the question.

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Definitions:

Large Stock Dividend

A large stock dividend is a distribution of shares to existing shareholders at no additional cost, usually in proportion to their current holdings, often used to conserve cash while still rewarding shareholders.

Capitalization

The process of recording expenditure as an asset on the balance sheet rather than an expense, which is then amortized or depreciated over time.

Market Value

The existing market price for buying or selling an asset or service.

Cash Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, paid to shareholders in cash.