If in Equitania,20% of the Population Receive 80% of the Income

question 197

Multiple Choice

If in Equitania,20% of the population receive 80% of the income and the remaining 80% of the population receive 20% of the income,Equitania's economy:

• A)is efficient.
• B)cannot be efficient since efficiency requires a more nearly equal distribution of income.
• C)may be efficient.
• D)is neither efficient nor equitable.

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Definitions:

Long-Term Assets

Long-term assets are assets that a company expects to use for more than one year, including property, plant, equipment, and intangible assets.

Notes Receivable

Financial assets representing amounts due to be paid to a company by customers or other entities in the form of promissory notes.

Direct Method

A method of preparing the cash flow statement where actual cash flow information from the company's operations is used, as opposed to indirect method adjustments.

Operating Cash Receipts

Money received by a company from its operational activities, such as sales of goods or services.