Nations (UN), where a coefficient above the 59th percentile represents poverty, 50-59% represents a state where daily needs are barely met, 40-50% a moderately well-off standard of living, 30-40% a good standard of living and below 30% a wealthy life. Inferring well-being from budget share for food. Based on Engel's empirical findings that the share of budget spent on food falls with rising income, suggests that economic growth (and with it rising incomes in the population) is a solution to malnourishment. Using the Engel coefficient countries can set national poverty lines, where the most common measure is to divide the cost of a nutritious diet by the Engel coefficient. In his paper Pope (2012) illustrates that convergence between food budget shares between rural and urban regions have been used to reflect standards of living. Food's budget share as indicator of changes in real income. Hamilton (2001) interprets Engel's law and suggests that movements in the percentage of budget share spent on food may serve as an indicator of changes to the real income. In his paper, Hamilton (2001) measures the inconsistency of the real income inferred from changes to food budget shares with the real income measured directly and proceeds to estimate the bias in CPI. Food functions as a good indicator of inflation as its income elasticity is sufficiently different from 1.0; food is not durable, implying that expenditure on food is essentially equal to consumption; food is easy to separate from other goods in consumers' utility functions, and lastly food is a good easy to define. Agricultural sector shrinks as a percentage of total economic activity as a country grows. Engel's law implies that when a country grows, the agricultural sector will constitute a smaller percentage of the country's economic activity. This is due to the fact that the share of income spent on food decreases as income itself increases (from economic growth). Poper (2012) illustrates on the U.S. that the share of workers in the agricultural sector fell from 41% in 1900 to less than 2% in 2000. This phenomenon is reflected in the fact that more developed economies have lesser proportion of the workforce in the agriculutral sector. Increases in agricultural prices affect the poor disproportionately. From the Engel's law it is evident that food constitutes a large proportion of the budget of the poor, and therefore changes in related prices have a larger impact on