Related to the Economics in Practice on p.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 choice plays a role beyond just consuming basic biological needs such as food. Therefore, option A and D are incorrect. Option B is also incorrect as it implies that all consumption decisions are made by the government in extremely poor societies, which is not supported by the survey findings.

Related to the Economics in Practice on P