Share of food in total consumption expenditure has been coming down as per capita income grew over time in last sixty years because

examrobotsa's picture
Q: 28 (CDS-I/2014)
Share of food in total consumption expenditure has been coming down as per capita income grew over time in last sixty years because

question_subject: 

Economics

question_exam: 

CDS-I

stats: 

0,85,87,14,52,85,21

keywords: 

{'food expenditure': [0, 0, 0, 1], 'less food': [0, 0, 0, 1], 'total consumption expenditure': [0, 0, 0, 1], 'capita income': [0, 1, 3, 4], 'growth': [1, 1, 1, 0], 'food': [18, 3, 8, 24], 'food basket': [0, 1, 0, 1], 'population': [3, 1, 2, 1], 'percentage': [1, 2, 2, 3], 'share': [0, 0, 2, 3]}

The correct answer is option 3: growth in food expenditure has been lower than the growth in per capita income.

Option 1 suggests that people have been purchasing less food, but this is not the main reason for the decline in the share of food in total consumption expenditure. While it is possible that people may be purchasing less food, it is not the driving factor behind the trend.

Option 2 states that people have been preferring non-cereal items in their food basket. While this may be true, it does not explain why the share of food in total consumption expenditure has been decreasing. Even if people are choosing to buy different types of food, it does not necessarily mean that they are spending less on food overall.

Option 3 correctly identifies the main reason for the decline in the share of food in total consumption expenditure. As per capita income grows over time, people have more money to spend on various goods and services. However, the growth in food expenditure has been lower than the growth in per capita income. This means that people are spending a smaller proportion of their total income on food, leading to the decline in the share of food in total consumption expenditure.

Option 4 suggests that the percentage of the poor in the population has increased over time. While this may be a

Practice this on app