Which of the Following Is Indicated by the Engel's Law

question 26

Multiple Choice

Which of the following is indicated by the Engel's law?

• A)Everything else remaining unchanged, an increase in the price of a commodity lowers the real income of the consumers.
• B)In the long run an increase in per capita income will drive down the relative prices of primary products.
• C)In the long run the developing countries will grow faster than the developed countries.
• D)The rate of inflation in an economy is inversely proportional to the rate of unemployment.

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Definitions:

World Bank

An international credit institution that extends loans and grants to governmental authorities in needy countries for the objective of completing capital projects.

Grant

A Grant is a financial award given by an organization, usually the government, to individuals, businesses, or other entities to support a specific project or purpose without requiring repayment.

Natural Resource Problem

Issues arising from the overuse, misuse, or depletion of natural resources, often leading to environmental and ecological harm.

Developing Countries

Nations with lower levels of industrialization, lower standards of living, and, generally, lower Human Development Index scores than developed countries.