Hand-to-mouth consumers:
(i) spend more on necessities than on luxuries.
(ii) save very little or nothing at all.
(iii) purchase a large amount of luxury items.
(iv) live paycheck to paycheck.
A)(iv) only
B)(i), (ii), and (iv)
C)(iii) and (iv)
D)(i) and (ii)

Question

Quizplus · Accepted Answer

Hand-to-mouth consumers prioritize spending on necessities over luxuries and typically save very little or nothing at all. This leads them to live paycheck to paycheck, relying on their next paycheck to cover their expenses. Therefore, option B, which includes (i), (ii), and (iv), is the best choice. Option C is incorrect because hand-to-mouth consumers do not purchase a large amount of luxury items. Option A is also incorrect because it only includes (iv) and does not account for their spending habits on necessities and savings. Option D only includes (i) and (ii), which is not a complete representation of hand-to-mouth consumers' financial behavior.

Hand-To-Mouth Consumers: (I) Spend More on Necessities Than on Luxuries