Figure 332 Illustrates Lorenz Curves for Four Different Economies

question 149

Multiple Choice

Figure 33.2 illustrates Lorenz curves for four different economies.For which economy would the lowest 20 percent of families receive the smallest share of total income?

• A)A
• B)B
• C)C

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Definitions:

Associate

A company in which another company owns a significant portion (usually between 20% and 50%) but not a majority stake, providing it with significant influence.

Equity Entries

Accounting transactions that affect the owners' equity account in a company's balance sheet, such as issuing stock or paying dividends.

Parent Entities

Companies that own more than half of the voting rights of another company or have control over it, making the other company a subsidiary.

Goodwill

An intangible asset that represents the excess value of a company over the fair value of its identifiable assets and liabilities, often arising from acquisitions.