Final answer:
The question addresses business concepts such as calculating accounting profit, merchandise balance, current account balance, and constructing a Lorenz curve, all of which are important in understanding financial data.
Step-by-step explanation:
Analyzing Data in Business Accounting
When computing revenues, expenses, and income, it's crucial to accurately analyze the data. In the context of the given question, we are required to calculate various financial measures such as accounting profit, merchandise balance, the current account balance, and to construct a Lorenz curve. Accounting profit is calculated by subtracting explicit costs from total revenues. The formula shown, Accounting profit = total revenues minus explicit costs, implies that if we have $1,000,000 in revenue and explicit costs of $600,000, $150,000, and $200,000, the accounting profit equals $50,000.
Additionally, to determine the merchandise balance and current account balance, we use the values for goods, services, and income payments. The consumption function, represented by C, deals with national income Y and taxes T, where consumption changes based on these variables. For example, if national income Y is $300 and taxes T are $60, the consumption would be calculated as $20 + 0.9($300 - $60) which equals $236.
The Lorenz curve, used to represent income distribution, requires converting the shares of income for each quintile into cumulative income to accurately graph the curve. This transformation is key for visualizing income inequality.