1) Option A is correct. This can be explained by the table below:
Age Years lived Income Income-Expenditure
5 35 0+800,000+0=$800,000 800,000-700,000 =100,000
15 25 0+600,000=$600,000 600,000-500,000=100,000
25 15 0+200,000=$200,000 200,000-300,000= -100,000
35 5 0 0-100,000= -100,000
Thus, we can say that annual distribution of net income is equal to the line of equality.
2) Option D is correct as total value of claims = $100,000*10 =$1,000,000 = $1 million
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