If Substantial Income Mobility Is Present

question 3

Multiple Choice

If substantial income mobility is present,

• A) there is considerable movement of individuals up and down the income ladder when income comparisons among the same individuals or households are made at different points in time.
• B) annual income data are an accurate indicator of the long-term economic status of individuals and families.
• C) the rich tend to stay rich and the poor tend to stay poor.
• D) individuals and families move quite often among the geographic regions of a country but not among income groups.

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Definitions:

Entrepreneur's Talent

The unique set of skills, insights, and abilities that an entrepreneur possesses, contributing to their success in creating and running businesses.

Annual Revenue

The total amount of money earned by a business over a year from its sales or services.

Economic Profits

Profits calculated by subtracting both explicit and implicit costs from total revenues.

Explicit Costs

The direct payment made to others in the course of running a business, such as wages, rent, and materials.