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Why can additional income be especially important for a poor family that spends much of its income on food and housing?

Answer and explanation

Correct answer: Because it can help meet basic needs

A poor family may not be able to meet essential needs fully. Additional income can help it afford more or better food, housing, and other necessities, so it can make a substantial difference to welfare. Option B gives the relevant reason; the other choices do not explain the value of extra income.

Related tags

Basic NeedsPovertyIncome And WelfareMarginal UtilityGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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