Related to the Economics in Practice on page 39: The results of the survey conducted by Esther Duflo and Abhijit Banerjee found that in extremely poor societies,
A) household choice plays no role in consumption decisions.
B) all consumption decisions are made by the government.
C) household choice even plays a role in non-food-related consumption decisions.
D) the only consumption decisions in which household choice plays a role is in the consumption of biological needs such as food.

Question

Quizplus · Accepted Answer

The survey conducted by Esther Duflo and Abhijit Banerjee found that in extremely poor societies, household choice even plays a role in non-food-related consumption decisions. This means that individuals in poverty have some agency in their consumption decisions, despite their economic circumstances. Thus, option C is the correct choice. Options A and B are incorrect because they make sweeping and unrealistic assumptions about consumption decisions in extremely poor societies. Option D is incorrect because it is too narrow in scope and does not reflect the findings of the survey.

Related to the Economics in Practice on Page 39: the Results