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Q144 (IAS/1995) Economy › Growth, Development, Poverty & Employment › Household consumption patterns Answer Verified

Consider the diagram given below : T : Transport Ec : Education of children H : Housing C : Clothing F : Food S : Savings O : Others From the diagram shown it would be right to conclude that

Result
Your answer: —  ·  Correct: D
Explanation

A household expenditure pie chart that breaks income down into Transport, Education, Housing, Clothing, Food, Savings and Others shows how the total income has been allocated across both consumption (essential) and non-consumption uses. The presence of positive allocations to categories representing essentials (food, clothing, housing, education, transport) alongside a savings slice implies that essential outlays have been financed from income rather than left wholly unfunded; this interpretation rests on the standard partition of income into consumption and savings shown in expenditure accounts [1]. Measurement of poverty and minimum consumption emphasises defining essentials in terms of required consumption expenditure; if the chart allocates income to these items, it supports the conclusion that essentials are being met out of income [2].

Sources

  1. [1] Macroeconomics (NCERT class XII 2025 ed.) > Chapter 4: Determination of Income and Employment > Some Definitions > p. 55
  2. [2] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 8: Inclusive growth and issues > 8.2 Poverty Estimation in India > p. 255
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