Certified Production & Operations Manager (POM) Practice Exam

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What is likely to cause changes in market opportunities related to income and wealth?

Technological change
Demographic change
Economic change
Regulatory change

The correct answer is: Economic change

Market opportunities related to income and wealth are primarily influenced by economic change. Economic change encompasses shifts in overall economic performance, inflation rates, unemployment levels, and income distribution, all of which directly impact consumers' purchasing power and spending behavior. When the economy experiences growth, people's incomes may rise, leading to increased demand for goods and services, effectively creating new market opportunities. Conversely, during economic downturns, income levels might decrease, limiting consumer spending and narrowing market opportunities. While technological changes can create new products and markets, and demographic changes can modify the composition of consumers, they do not inherently target the dynamics of income and wealth as directly as economic changes do. Regulatory changes might impact how businesses operate and can influence the economy indirectly, but again, they are not the primary drivers for adjusting market opportunities based on income and wealth fluctuations. Therefore, economic change is the most significant factor in prompting shifts in market opportunities tied to income and wealth considerations.