If Substantial Income Mobility Is Present

question 3

Multiple Choice

If substantial income mobility is present,

• A) there is considerable movement of individuals up and down the income ladder when income comparisons among the same individuals or households are made at different points in time.
• B) annual income data are an accurate indicator of the long-term economic status of individuals and families.
• C) the rich tend to stay rich and the poor tend to stay poor.
• D) individuals and families move quite often among the geographic regions of a country but not among income groups.

---

Definitions:

Consumption

The use of goods and services by households, constituting one of the primary components of GDP.

Developing Nations

Countries with a lower living standard, undeveloped industrial base, and low Human Development Index (HDI) relative to other countries.

Industrially Advanced Nations

Countries that have highly developed economies, characterized by significant industrial growth and high levels of income.

Capital Flight

The rapid movement of large sums of money or capital out of a country due to economic or political instability.