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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?
- It decreases (correct)
- It remains the same
- It increases
- It fluctuates
What is the main principle underlying Engel's Law?
What is the main principle underlying Engel's Law?
- As income rises, the percentage spent on food increases
- As income rises, the percentage spent on food decreases (correct)
- As income rises, the percentage spent on food remains constant
- As income rises, the percentage spent on food becomes unpredictable
What are some examples of expenditure categories that have grown since Engel's time, according to the text?
What are some examples of expenditure categories that have grown since Engel's time, according to the text?
- Automobiles, health insurance, and mobile phones (correct)
- Jewelry, luxury vacations, and designer clothing
- Home appliances, gardening tools, and pet care
- Entertainment systems, home decor, and gourmet food
What may some of the money spent on other things, as per Engel's Law, lead to?
What may some of the money spent on other things, as per Engel's Law, lead to?
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Suppose a family with an annual household income of Rs 50,000 spends 25% of their income on food. How much do they spend on food annually?
Suppose a family with an annual household income of Rs 50,000 spends 25% of their income on food. How much do they spend on food annually?
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