The movement of individuals and households from one income quintile to another over time is called

Question

Quizplus · Accepted Answer

Income mobility refers to the movement of individuals and households from one income quintile to another over time, indicating changes in economic fortunes. Option A, income averaging, refers to spreading income over a longer period to minimize the impact of fluctuations in income. Option B, wealth turnover, is not a commonly used term in economics. Option D, the ratchet effect, refers to the tendency of prices, wages, or policies to only move in one direction, typically upward, making it difficult to reverse the direction in the future.

The Movement of Individuals and Households from One Income Quintile