The Figure Given Below Shows the Lorenz Curves of Two

question 81

Multiple Choice

The figure given below shows the Lorenz curves of two countries (Country A and Country B) .Figure 19.2
Total income (cumulative percentage)
Total population (cumuative percentage)

-A major problem with household data is that:

• A)the income of the households vary greatly.
• B)the households usually vary in their consumption patterns.
• C)the households usually comprise of only one individual.
• D)collecting data from the households is highly inconvenient.
• E)the number of persons per household varies greatly.

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Definitions:

Withholding Allowance

the portion of an employee's income that is not subject to tax withholding by the employer, typically used to calculate the amount of income tax withheld from a paycheck.

Federal Income Tax

A charge imposed by the national government on the yearly income of individuals, corporations, trusts, and various legal bodies.

Gross Earnings

The total amount of revenue or income earned by an individual or business before any deductions or taxes are applied.

Net Pay

The amount of money an employee takes home after deductions like taxes and retirement contributions have been subtracted.