In Less-Developed Countries,the Poor,those Making Less Than $2

question 80

Multiple Choice

In less-developed countries,the poor,those making less than $2.25 a day,typically spend how much of their income on food?

• A) 20%
• B) 35%
• C) 40%
• D) 58%
• E) 70%

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Definitions:

Aggregate Income

The total income earned by all factors of production in an economy, including wages, rents, interest, and profits, over a specific period.

Aggregate Consumption

The total spending by households on goods and services within an economy during a specific period.

Consumption Function

A macroeconomic term that describes the relationship between total consumption and gross national income.

Aggregate Income

Aggregate Income is the total income earned by all individuals or entities in the economy within a specific period.