Any combination of goods lying outside of the budget line:
A. implies that the consumer is not spending all his income.
B. yields less utility than any point on the budget line.
C. yields less utility than any point inside the budget line.
D. is unattainable, given the consumer's income.
Answer: D
You might also like to view...
If you purchase a $100,000 interest-rate futures contract for 110, and the price of the Treasury securities on the expiration date is 106, your ________ is ________
A) profit; $4000 B) loss; $4000 C) profit; $6000 D) loss; $6000
According to economists, when two people make exactly the opposite decision
A) one of them is acting irrationally. B) each person evaluates the situation according to his/her individual self-interest. C) one of them is acting out of spite. D) one of them should compromise.
Barter was more feasible in primitive societies than in modern societies because: a. there was no inflation in primitive societies
b. there were many goods available for trade in primitive societies, so people could always find the goods that they wanted. c. specialization was limited and thus there were few goods available for trade in primitive societies. d. specialization was limited and thus there were many goods available for trade in primitive societies. e. people in primitive societies had limited wants.
Exports minus imports equals:
(a) NX; (b) GDP; (c) Net exports; (d) a and c are correct.