Use the Following to Answer the Questions

question 79

Multiple Choice

Use the following to answer the questions.
A new U.S.automobile company,Specialty Motors,was established in 2004.In 2008,a recession caused disposable income to decline,and the annual amount of dollars spent by consumers for automobiles dropped drastically.Specialty Motors faced the problem of trying to determine whether the economy would turn toward prosperity or toward depression.No matter what happened,Specialty Motors was also worried about an impending global steel shortage,which would make a big difference in its future marketing plans.The economy might recover from the recession,but the automobile makers might be forced to ask consumers to curtail consumption just when the hope of a better year was finally in sight.All in all,the future looked dismal for Specialty Motors.
-Refer to Scenario 3.2.The income a consumer would use to purchase a Specialty Motors automobile is considered ____ income.

• A) discretionary
• B) buying power
• C) disposition
• D) consumer spending
• E) comprehensive spending

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Definitions:

Financial Data

Information relating to the financial operations of a company, including income, expenses, and investment performance.

Alternative Courses of Action

Different strategies or plans that could be pursued to achieve a goal or solve a problem.

Allocation of Limited Resources

The process of distributing scarce resources among various projects or business units.

Incremental Costs

The additional costs incurred when producing an additional unit of a product or service.