Chapter 5, Problem 9AA

To determine

The best word as the answer to the question.

Answer to Problem 9AA

Option (b) − Significant.

Explanation of Solution

Housing has been the largest expense for any family. It is not just the cost of housing, but also the various factors, such as if there is rent, mortgage payment, or taxes and even fee for facilities like electricity, etc everything gets involved in a household budget . Yet the most significant part is the cost of housing which involves the major of the expenses because of its necessity.

No other option fits best in the answer to the question as all the other options given do not indicate the major importance of the cost of housing in the household budget except the word ‘significant’ as it explains how important and major the expense is, in a family’s budget.

Economics Concept Introduction

Introduction:

A household budget is one among the most important budgets for a family because it tells you to know the areas in which you need to spend and in which areas not to depend upon the necessity of the family.