What is a budget constraint?
What will be an ideal response?
A budget constraint is the limit imposed on household choices by income, wealth, andproduct prices.
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A college must decide if it wants to offer more evening and weekend classes. This decision involves answering the economic question of "for whom to produce."
Indicate whether the statement is true or false
If at the current level of product-specific service, consumers' value at $12 and the cost of retailers to provide the services is $12, which of the following is true?
A) the profit-maximizing level of profit-maximizing services is exactly double the current level B) the profit-maximizing level of profit-maximizing services is greater than the current level C) the profit-maximizing level of profit-maximizing services is less than the current level D) the profit-maximizing amount of product-specific services is being offered.
From the 1960s to the early 1990s, marginal tax rates _____
a. varied, but not in a consistent direction b. steadily declined c. steadily increased d. remained relatively constant
Spreads in quotations of exchange rates are:
a. the geographical dispersion of nations that use the currency. b. a measure of contagion involved in changes in exchange rates. c. the difference in the price the buyer pays versus the price the seller receives. d. he percentage of interest one pays when borrowing to purchase currencies.