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According to Engel's Law, what happens to the percentage of income spent on food purchases as household income rises?
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?
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?
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?
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?
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?
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?
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?
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?
What is the underlying principle of Engel's Law in modern times?
How does Engel's Law impact antipoverty programs?
How does Engel's Law impact antipoverty programs?
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