"There Is Considerable Movement Up and Down the Economic Ladder

question 62

Multiple Choice

"There is considerable movement up and down the economic ladder. Relative income positions often change over time." This statement is

• A) true; at different points in time people tend to change position in the income distribution
• B) only true for industrialized countries
• C) false; people tend to stay in the same place within the income distribution
• D) false; people tend to stay in the same quintile that their parents were in

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Definitions:

IFRS 8

An International Financial Reporting Standard that requires companies to report financial information by business segment to provide a clearer understanding of a company’s performance.

Operating Segment

A component of an enterprise that engages in business activities earning revenues and incurring expenses, whose operating results are regularly reviewed by the enterprise's chief operating decision maker.

Quantitative Threshold

A specified numerical limit or benchmark that must be met or exceeded, often used in contexts like financial regulation or performance measurement.

Reportable

Refers to information or actions that must be disclosed to regulatory authorities or in financial statements according to legal or regulatory requirements.