A budget constraint
A) represents the bundles of consumption that make a consumer equally happy.
B) reflects the desire by consumers to increase their income.
C) refers to the limited amount of income available to consumers to spend on goods and services.
D) shows the prices that a consumer chooses to pay for products he consumes.
C
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When a firm increases its capital usage
a. the total product curve can be expected to fall. b. the total product curve can be expected to rise. c. the marginal product of labor always rises. d. the marginal product of labor always falls
Capitalization
What will be an ideal response?
The lack of investment in developing countries is at least in part attributable to:
A. high levels of foreign aid. B. low levels of domestic savings. C. inappropriate education. D. overpopulation.
Angelina, age seven, decides to dress up like Princess Fiona for Halloween. What is the opportunity cost of her decision?
A. the cost of the costume B. the fact that she can't dress up like Dora the Explorer, her second choice C. zero, because seven-year-olds don't have opportunity costs D. the cost of the Lady Gaga costume which she did not want