Americans Living Longer: A True Statement | CFA Level 1 Exam Prep

Americans Living Longer

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Question

Which statement is true concerning Americans living longer?

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Explanations

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A. B. C. D. E. F.

A

These are all trends that have happened or should expect to happen in the future given the fact that there will be more older people in the population.

Based on the provided options, the correct answer is A. All of these statements are true.

Let's break down each statement to understand why they are true:

A. All of these statements are true. This option states that all the statements given in the answer choices are true. This means that all the statements from B to F are accurate, and there is no false statement among them. Therefore, option A is correct.

B. None of these statements are true. This option states that none of the statements given in the answer choices are true. However, this contradicts the fact that all statements are true, as stated in option A. Therefore, option B is incorrect.

C. The elderly have more disposable income than the younger population. This statement is generally true. As people age, they tend to accumulate wealth, such as savings, retirement funds, and investments. Additionally, older individuals typically have lower expenses, as they may have paid off their mortgages, children's education expenses, and other financial obligations. This combination of higher wealth and lower expenses often results in higher disposable income for the elderly compared to the younger population.

D. The income group that has advanced the most is that of the elderly. This statement is also true. Over the past few decades, there has been significant progress in the financial well-being of the elderly population. Factors such as increased access to retirement plans, improved healthcare leading to longer working lives, and social security benefits have contributed to the economic advancement of older individuals. Consequently, the income group that has experienced the most significant improvement is that of the elderly.

E. The health care industry should expect to grow. This statement is true. With Americans living longer, there is a greater demand for healthcare services. As people age, they generally require more medical care, including preventive care, treatments for chronic conditions, and long-term care. This increased demand for healthcare services leads to the growth of the health care industry.

F. Youth-oriented industries should expect to shrink. This statement is also true. As the population ages, the proportion of younger individuals in the overall population decreases. Consequently, industries that primarily cater to younger individuals, such as toys, children's clothing, and education, may experience a decline in demand. This shift in demographics often leads to youth-oriented industries shrinking relative to other sectors of the economy.

In conclusion, option A is the correct answer because all of the statements from C to F are true.