In the Context of the Income Pyramid, Which of the Following

question 14

Multiple Choice

In the context of the income pyramid, which of the following statements is true of the base of the pyramid?

• A) It is the richest socioeconomic group in the global economy.
• B) The average income of people in this group is just over $10 a day.
• C) It is the largest socioeconomic group in the global economy.
• D) The average income of people in this group is just over $20 a day.

Analyze the impact of personal, social, and economic factors on financial planning.

Understand the significance of setting both short-term and long-term financial goals.

Recognize the importance of maintaining adequate insurance coverage as a part of financial planning.

Identify strategies for wise spending and investing decisions within financial planning.

---

Definitions:

Gym Memberships Revenue

Revenue generated from the sale of memberships or subscriptions to a fitness gym.

Prepaid Gym Memberships

Payments made in advance for gym services, representing a future expense for the gym that becomes realized as the service period elapses.

Prepaid Insurance

An asset account on the balance sheet that represents the advance payment of insurance premiums for future coverage periods.

Expired Insurance

Insurance coverage that has come to an end or is not in force due to the expiration of the policy term.