Match List I with List II

LIST I		LIST II
A	Engel Curve	I. A good that is scarce
B	Consumer	II. Trade barriers
C	Free trade agreement	III. An individual that purchase goods or service
D	Economic good	IV. Relationship between income and quantity demanded

Correct option is A

The correct answer is (A) A-IV, B-III, C-II, D-I

Explanation:
• Engel Curve (A) represents the relationship between income and the quantity of a good demanded (IV).
• Consumer (B) is an individual or entity that purchases goods or services (III).
• Free Trade Agreement (C) is a pact between nations to reduce or eliminate trade barriers (II) like tariffs.
• Economic Good (D) is a good that is scarce relative to the demand for it (I) and thus commands a price.

Information Booster:
• According to Engel's Law, as income rises, the proportion of income spent on food decreases, even if absolute expenditure on food increases.
• Free goods, unlike economic goods, are available in abundance (like air) and have no opportunity cost.

Additional Knowledge:
• Trade barriers can be tariff-based (taxes) or non-tariff based (quotas, quality standards).
• The concept of the consumer is central to microeconomic theory, which studies how individuals make decisions to maximize utility.