While Performing Needs Analysis,when Determining the Available Resources to Offset

question 70

Multiple Choice

While performing needs analysis,when determining the available resources to offset the economic needs,you would generally ignore:

• A)Social Security benefits.
• B)the educational qualification of the children.
• C)the earning potential of the surviving spouse.
• D)savings corpus.
• E)the employer-provided group life insurance.

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Definitions:

Disposable Income

The leftover money for households to use in savings and for buying things, once income taxes have been considered.

Consumption Function

An economic formula that represents the relationship between total consumption and gross national income, indicating how changes in income affect spending.

Consumption Function

A financial equation that depicts the correlation between overall spending and gross national income.

Consumer Expectations

Consumer Expectations refer to the perceptions and predictions of future financial conditions or performances, which influence consumer behavior in the economy.