The Area Under a Lorenz Curve Is 0

question 1

Multiple Choice

The area under a Lorenz curve is 0.30.What is its Gini coefficient?

• A) 0.15
• B) 0.20
• C) 0.30
• D) 0.40

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Definitions:

Marginal

Refers to the additional or incremental change in an outcome resulting from a unit change in some activity, often used in economics to discuss marginal cost or benefit.

Recaptured Depreciation

The taxable difference between adjusted cost of disposal and UCC when UCC is smaller.

UCC

Uniform Commercial Code, a set of laws that provide legal rules and regulations governing commercial or business dealings and transactions in the United States.

Adjusted Cost

Adjusted cost refers to the cost basis of an asset after adjustments for stock splits, dividends, and return of capital distributions, used for tax purposes.