The question is based on the diagram that categorizes the distribution of a family`s income.

Option 1 suggests that the family spent more than half their income on food and clothing. There`s no indication in the diagram that shows the proportions spent on various categories to determine that.

Option 2 claims that the amount saved by the family was too little. Without knowing what would be considered "too little", this statement is subjective and cannot be inferred from the diagram alone.

Option 3 asserts that the family had no health problems. The diagram doesn`t provide any information about the family`s health status, hence, it can`t be inferred based on the given diagram.

Option 4 indicates that the family managed to meet all the essential expenses out of the income earned. This is the correct answer because the diagram only shows the categories the family`s income was spent on, devoid of any indications of financial struggles or unmet needs. Therefore, it`s reasonable to infer that the family`s income was sufficient to cover all the categories, i.e., "essential expenses" listed.