In 2006 consumers spent approximately 13 percent of

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Unformatted text preview: hat is a luxury and what is a necessity. The Department of Labor monitors consumer expenditures through its annual Consumer Expenditure Survey. In 2006, consumers spent approximately 13 percent of their income on food, 34 percent on housing, and 4 percent on clothes. While an additional 35 percent is often spent on transportation, health care, and insurance, the remainder is generally viewed as discretionary. The percentage of income spent on food and housing typically declines as income increases, which can provide an increase in 66 ker81063_ch03_058-077.indd Page 67 8/13/08 12:57:09 AM user ker81063_ch03_058-077.indd Page 67 8/13/08 12:57:09 AM user /Volumes/203/MHBR060/ker10ch03 /Volumes/203/MHBR060/ker10ch03 discretionary income. Discretionary expenditures can also be increased by reducing savings. The Bureau of Labor Statistics has observed that the percentage of income put into savings has been steadily declining and has been negative since 2005.17 TECHNOLOGICAL FORCES LO4 technology Inventions from applied science or engineering research Our society is in a period of dramatic technologic...
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