A budget line is defined as
A. the number of units of a good that can be purchased over a range of prices.
B. the combinations of a set of two goods that can be purchased, given current income and current prices for the goods.
C. how a household’s budget is allocated to various members of the family.
D. the maximum amount of money that can be spent.
E. the combinations of a set of two goods that the household prefers over other combinations.
Answer: B
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Refer to the figure above. What is the domestic demand for calculators in Barylia, once the economy opens up to free trade?
A) 20 units B) 50 units C) 60 units D) 100 units
Briefly explain the factors of production and give an example of each
What will be an ideal response?
The opportunity cost of deficit spending is likely to be low: a. only when it creates new physical capital
b. only when it creates new human capital. c. only when it improves existing physical capital. d. only when it improves existing human capital. e. when it creates or improves physical or human capital.
The goal of managers is to manage resources in such a way
A) to make them worth as much as they would be in their next best use. B) to make them worth more than they would be in any other use. C) to cover the cost of capital. D) to cover all opportunity costs.