Many Young, Working Couples Choose to Have Just One Kid

question 71

Multiple Choice

Many young, working couples choose to have just one kid or none at all. These couples hardly have any responsibilities like saving up for children's education or securing children's future. This leaves them with more than enough money to spend on luxury goods. Most of them enjoy high spending power and splurge on a lot of luxurious goods. In this scenario, which of the following is a trend that is most likely to influence the consumer behavior?

• A) Declining birthrates
• B) Declining consumer affluence
• C) Increasing life expectancy
• D) Increasing population

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Definitions:

Lockbox

A service offered by banks to companies for the collection of payments from customers, involving a special post office box to speed up the deposit process.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business, whichever is longer.