Statistical Data Provided by the U

question 8

Multiple Choice

Statistical data provided by the U.S. Department of Transportation shows that the median income of individuals traveling on the nation's bus systems is $18,000 compared to $65,000 for those who normally travel by air. This finding is best explained by which of the following statements?

• A) Persons with high income are more likely to fly because the opportunity cost of their time is generally higher than those with lesser income.
• B) Traditionally, lower income groups prefer slower methods of transportation.
• C) Wealthy individuals own stock in the airlines and, therefore, receive preferential treatment.
• D) Low-income groups are generally located near bus stations; wealthy groups congregate around airports.

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Definitions:

Stockholders' Equity

The ownership interest of shareholders in the net assets of a corporation, represented by the difference between total assets and total liabilities.

Liabilities

Financial obligations or debts that a company owes to others, such as loans, accounts payable, and mortgages.

No-Par Stock

Refers to stocks issued without a specified face value but instead are sold at a price determined by the issuing company.

Credited

Recorded or acknowledged as having received something, often used in financial contexts to indicate an addition to certain accounts.