Income is a variable often used in business and economics. Income is an example of a variable that uses the:
A) Ordinal scale
B) Nominal scale
C) Ratio scale
D) Interval scale

Question

Quizplus · Accepted Answer

Income uses the ratio scale because it has a true zero point and can therefore be measured in terms of multiples (i.e. someone making $50,000 has twice the income of someone making $25,000). The other scales do not have a true zero point, making them unsuitable for measuring income.

Income Is a Variable Often Used in Business and Economics