Engel's Law Quiz

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According to Engel's Law, what happens to the percentage of income spent on food purchases as household income rises?

It increases

It fluctuates

It remains constant

It decreases (correct)

What is the main implication of Engel's Law?

As income increases, spending on food becomes unpredictable

As income increases, spending on food remains constant

As income increases, spending on food decreases proportionally (correct)

As income increases, spending on food increases proportionally

What are some examples of expenditure categories that have grown since Engel's time?

Jewelry, clothing, and furniture

Books, music, and electronics

Automobiles, health insurance, and mobile phones (correct)

Utilities, groceries, and entertainment

What is the significance of Engel's Law in the context of economic and social policies?

It influences antipoverty programs Signup and view all the answers

How does Engel's Law relate to financial security and affluence?

Spending on education may lead to greater financial security and affluence Signup and view all the answers

According to Engel's Law, what happens to the percentage of income allocated for food purchases as household income rises?

It decreases Signup and view all the answers

What is the main implication of Engel's Law?

As income increases, more is spent on non-food items Signup and view all the answers

Which of the following is an example of a category of expenditure that has grown since Engel's time?

Automobiles Signup and view all the answers

What is the underlying principle of Engel's Law in modern times?

Once food needs are met, money is spent on other things Signup and view all the answers

How does Engel's Law impact antipoverty programs?

It provides a foundational principle for them Signup and view all the answers

Engel's Law Quiz

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Questions and Answers

According to Engel's Law, what happens to the percentage of income spent on food purchases as household income rises?

What is the main implication of Engel's Law?

What are some examples of expenditure categories that have grown since Engel's time?

What is the significance of Engel's Law in the context of economic and social policies?

How does Engel's Law relate to financial security and affluence?

According to Engel's Law, what happens to the percentage of income allocated for food purchases as household income rises?

What is the main implication of Engel's Law?

Which of the following is an example of a category of expenditure that has grown since Engel's time?

What is the underlying principle of Engel's Law in modern times?

How does Engel's Law impact antipoverty programs?

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