Demographic Changes Include Variations in Income Distribution

question 70

Multiple Choice

Demographic changes include variations in income distribution. Which of the following statements is true?

• A) Firms are most interested in the consumers comprising the top ten percent of the household income.
• B) In general, living standards have deteriorated over time.
• C) The general loss in real income has been somewhat offset by the increase in dual-career couples.
• D) Workforce diversity is making the concept of average income obsolete.

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Definitions:

Cash Payments

Transactions involving the outflow of cash to settle debts, purchase goods, or cover expenses.

Canceled Checks

Checks that have been paid by the bank, marked as canceled, and are no longer negotiable.

Payee

The entity in a financial deal that gets the payment.

Bank Deposits

Funds placed into a bank account by a depositor, including cash and checks, for safekeeping and potential interest earnings.