WAEC 2020 Economics · Question 16

Expenditure on food takes a large proportion of the incomes of people in

Options

  1. A.industrialized countries
  2. B.advanced countries
  3. C.developing countries
  4. D.capitalist countries

Answer: C. developing countries

Explanation written with AI and checked against the answer key

Step 1: Analyze the question The question asks which group of countries spends a large share of income on food.

Step 2: The concept (Engel's Law) Engel's Law says that as income rises, the proportion of income spent on food falls, even though the actual amount spent on food may rise. So:

  • Low-income households and countries spend a large share of their income on food, because food is a basic necessity.
  • High-income households and countries spend a small share on food and more on manufactured goods, services, leisure, and savings.

Step 3: Evaluate the options

  • A. Industrialized countries: These have high average incomes, so the share spent on food is small.
  • B. Advanced countries: This is another term for rich countries, so the share is also small.
  • C. Developing countries: Incomes are low, so a large part goes to basic needs like food. This fits.
  • D. Capitalist countries: This describes an economic system, not an income level. Many capitalist countries are rich and spend a small share on food.

Step 4: Answer The correct option is C. developing countries.

Exam tip: Link "large proportion spent on food" with "low income" or "poor," and think of Engel's Law. Whenever you see "food" and "large proportion," look for the option that means poor or developing countries. Words like "industrialized" and "advanced" always point to rich countries.

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