If the Area Between the Diagonal Line of Absolute Equality

question 121

Multiple Choice

If the area between the diagonal line of absolute equality and the Lorenz curve is greater for the United States than for Japan,we can conclude that the

• A)Distribution of income in Japan is closer to being equal than in the United States.
• B)Distribution of income in Japan is as equal as in the United States.
• C)Distribution of income in Japan is less equal than in the United States.
• D)Relative distributions of income in the two countries are the same.

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Definitions:

Gross Investment

The total amount spent on acquiring new assets and maintaining or upgrading existing ones, without deducting for depreciation.

Lessor's Balance Sheet

A financial statement detailing the assets, liabilities, and equity of a lessor under lease transactions.

Current Asset

An asset that is expected to be converted into cash, sold, or consumed within one year or within the business's normal operating cycle.

Interest Income

The earnings received from investing in interest-bearing financial instruments, like bonds, loans, or savings accounts.