Quiz 6

Question 1

For most households, we expect the share of food in the budget to be:

Answer 1

Decreasing with income; the more money a household makes, the relatively less they spend on food

Question 2

Among the poorest households, if household members face an S-shaped curve and are on the wrong side of it, we should see that the share of food in total expenditure is:

Answer 2

Increasing with income: there may be some fixed expenditure they have to take care of, and beyond that point, they can spend the rest on food

Question 3

Does the Engel Law refer to which of the following?

Answer 3

The concept that the more money people make, the less they’ll spend on food as a share of their total income

Question 4

Which is the most likely reason Indians tend to be shorter than the average American?

Answer 4

Undernutrition