Identifying Distinct Groups of People Who Are Similar to Each

question 21

Multiple Choice

Identifying distinct groups of people who are similar to each other in different characteristics is known as:

• A) audience segmentation.
• B) identification exercise.
• C) characteristic planning.
• D) demographic identification.

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Definitions:

Disposable Income

The sum of funds that families can allocate to expenditure and savings once they've paid their income taxes.

MPC

The marginal propensity to consume, which represents the proportion of an increase in income that is spent on consumption rather than being saved.

Saving

The share of earnings not used for immediate spending but saved or invested for future needs.

Consumption Function

An economic formula representing how consumer spending is related to various factors, including income levels.