Business Administration 3321K Chapter Notes - Chapter 12: Disposable And Discretionary Income, Luxury Goods, Behavioral Economics
4 May 2016
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Chapter 12: income, social class & family structure. Upward income shifts in canada linked to: a shift in women"s roles. Women are still a minority in professional occupations (most), but ranks continue to excel. Mothers with preschool children are fastest growing segment or working people. Nearly 30% of wives in dual-earner couples without children earn more than their spouse. Post-secondary pays off in the long run. Graduates from universities make 70% more on average than those who graduated high school or trade/vocational programs. Consumer demand depends on both the ability to buy and the willingness to buy. Demand for necessities stable over time. Discretionary income: the money available to a household over and above that required for a comfortable standard of living. Increases as overall income goes up + tax and debt burdens are relieved. As population ages and income levels rise, more tends to be spent on shelter and transport vs. food and apparel (the proportion of the budget)
