The Personal Distribution of Income Shows

question 158

Multiple Choice

The personal distribution of income shows

• A) that labor receives the largest percentage of total income.
• B) how profit accounts for the largest fraction of total income.
• C) that the richest 20 percent of households receive 23 percent of total income.
• D) that interest accounts for most of the income of the richest 20 percent of households.
• E) that the poorest 20 percent of households receive less than 4 percent of total income.

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Definitions:

Price/Earnings Ratio

A ratio for valuing a company that measures its current share price relative to its per-share earnings.

Equity-Financed

Refers to the method of funding a company's operations, expansion, or projects using the capital raised through the sale of equity, rather than using debt.

Total Earnings

The sum of all income and revenue generated by a business or individual within a specific period.

Shares Outstanding

Refers to all shares currently owned by shareholders, company insiders, and investors in the public domain, representing ownership in a company.