Rural Households

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Rural Households

by ronnie1985 » Sun May 20, 2012 10:11 am
Rural households have more purchasing power than do urban or suburban households at
the same income level, since some of the income urban and suburban households use for
food and shelter can be used by rural households for other needs.
Which of the following inferences is best supported by the statement made above?
A. The average rural household includes more people than does the average urban or
suburban household.
B. Rural households have lower food and housing costs than do either urban or suburban
households.
C. Suburban households generally have more purchasing power than do either rural or
urban households.
D. The median income of urban and suburban households is generally higher than that of
rural households.
E. All three types of households spend more of their income on food and housing than on all
other purchases combined.

OA after some discussion
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by jimmyjimmy » Sun May 20, 2012 10:50 am
think A
A says rural houses have more people, more spending compared to urban with same income.

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by GmatKiss » Sun May 20, 2012 12:35 pm
Clear A

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by ronnie1985 » Mon May 21, 2012 6:14 am
"since some of the income urban and suburban households use for
food and shelter can be used by rural households for other needs"

This statement tells us that the food and shelter bill of rural households is less than that of urban households

(B) is the answer.
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