Managerial Economicsbasic
A manager groups consumers by age ranges to investigate differences in product preferences. Which demographic idea is being used?
Answer
Age category
Explanation
### Why this is right
Age categories group people into named stages, such as infants, teenagers, and senior citizens, which may have distinct preferences. A statistical spread of ages is an age distribution.
### The concept
Demographic analysis studies population characteristics. Managers may use age categories to understand differences among groups, or age distributions to study how a population is spread across ages. These are related but not interchangeable descriptions.
### The other options
- **B. Age distribution**: This describes the statistical spread of ages, not the grouping label itself.
- **C. Political stability**: This concerns consistency and reliability in the political environment.
- **D. Natural environment**: This concerns physical conditions and natural resources.
### Watch out
A named group and the statistical spread across ages answer different questions.
### Terms
- **Demographic**: Relating to population characteristics, such as age or sex.
### Remember
A category names a group; a distribution describes how ages are spread.
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