Which of the Following Is a Demographic Trend with Significant

question 161

Multiple Choice

Which of the following is a demographic trend with significant implications to global marketers?

• A) the declining populations in Latin American countries
• B) the large and growing markets in India and China
• C) the tripling of the population of consumers under 40 years old
• D) the decreasing interest in entrepreneurship in developing countries
• E) the lack of savings of elderly populations in developed countries

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Definitions:

Induced Consumption

Spending by consumers that varies with income, meaning as income increases, consumption also increases, and vice versa.

Disposable Income

The budgeting capacity for households in terms of saving and spending after income tax commitments.

Saving

The portion of income that is not spent on consumption but rather set aside for future use, often in investments or deposit accounts.

Disposable Income

The net income available to individuals or households after all taxes have been deducted, which can be spent on consumption or savings.