Markets, Efficiency And The Public Interest
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- Markets, Efficiency And The Public Interesteconomics-mcqs › markets-efficiency-and-the-public-interest
- Published
- 31 May 2019
- Last updated
- 28 May 2026
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Based on Engel's law, what happens to the proportion of income allocated to various spending categories as income increases?
Multiple choice question for Markets, Efficiency And The Public Interest. Select an option, then review the explanation below.
Explanation
Engel's law states that as a person's income increases, the percentage of income spent on food decreases, while the share spent on other categories, such as luxury goods and services, increases. Therefore, the correct answer is that the proportion of income spent on other categories grows with rising income.
More Markets, Efficiency And The Public Interest MCQs
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