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zubka84 [21]
3 years ago
9

Identify the possible reason or reasons for this stark difference between income inequality and consumption inequality. Intergen

erational mobility allows children to consume more than their parents. The poverty line does not reflect relative poverty. The richest quintile has the ability to save a larger percentage of its income. Individuals experiencing temporary fluctuations in their incomes are more likely to maintain moderate spending habits.
Business
1 answer:
Fudgin [204]3 years ago
7 0

Answer:

  • The richest quintile has the ability to save a larger percentage of its income.
  • Individuals experiencing temporary fluctuations in their incomes are more likely to maintain moderate spending habits.

Explanation:

First part of this question reads:

In the United States, the richest quintile of the population receives 13 times as much income as the poorest quintile. However, the richest quintile only spends 4 times as much as the poorest quintile.

The richest quantile can afford to save more than the poorest quantile because they get enough income to manage their daily needs and then save. The poorest quantile on the other hand face a daily struggle and so have to spend all or most of their income to survive.

When the richer quantile goes through temporary fluctuations, they maintain moderate spending because they know it is temporary and so they keep saving. This is not the case for the poorer quantiles who have to spend according to their income - regardless of its fluctuating - to survive.

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Dominique owns an international grocery store, the World Food Market, where customers can purchase foods and canned goods from o
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Answer:

Imports

Explanation:

Dominique owns an international grocery store, the World Food Market, where customers can purchase foods and canned goods from other countries. World Food Market is an example of a company that imports. Dominique imports products from different countries and make them available to its customers on their shelves. They have to buy those products from different sources. For this purpose, they have to put large amount of efforts in order to contact the foreign vendors and get their product imported in their country and ultimately at their store by spending costs and efforts. By importing products from other country, they can provide large product assortment to their customers.

5 0
3 years ago
Ozdemir Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the
Paul [167]

Answer:

$5,490

Explanation:

Computation for the equivalent units for conversion costs

To complete beginning work in process inventory 360

[400*(1-10%)]

Units started and completed 4,500 (4,900-400)

Ending work in process inventory 630 (900*70%)

Equivalent units for Conversion costs $5,490 units

Therefore the equivalent units for conversion costs is $5,490

4 0
3 years ago
_____ is an approach to personal selling that assumes that the buying process for most buyers is essentially identical and that
Setler [38]

Answer:

Mental states selling

Explanation:

Mental states selling, or the formula approach to personal selling, assumes that the buying process for most  buyers is essentially identical and that buyers can be led through certain mental states, or steps, in the buying  process.   Relies on a structured sales presentation just like the stimulus response.  These mental states includes (AIDS) attention, interest, desire, and action

3 0
3 years ago
Which statement best explains why this passage is an
denis-greek [22]
The answer Is B! Hope this helps
7 0
3 years ago
Read 2 more answers
If ABC corporation paid a dividend of $6 per share last year. The stock currently sells for $80 per share. You estimate that the
krok68 [10]

Answer:

option (e) 13.95%

Explanation:

Data provided in the question:

Dividend paid, D0 = $6 per share

Current selling price = $80 per share

Dividend growth rate = 6% = 0.06

Now,

Cost of equity = [ D1 ÷ Current price] + Growth rate

=  [ ( D0 × (1 + g) ) ÷ $80 ] + 0.06

=  [ ( $6 × (1 + 0.06) ) ÷ $80 ] + 0.06

= [ 6.36 ÷ $80 ] + 0.06

= 0.1395

or

= 0.1395 × 100%

= 13.95%

Hence,

The correct answer is option (e) 13.95%

6 0
3 years ago
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