Related to the Economics in Practice on page 35: 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 households have some agency in deciding what to consume beyond just basic needs such as food. Option A and B are clearly incorrect as they suggest that households have no decision-making power in consumption. Option D is incorrect as the survey found that household choice plays a role in non-food-related consumption decisions.

Related to the Economics in Practice on Page 35: the Results