The budget line shows
a. different levels of consumption associated with different levels of incomes.
b. the affordable combinations of goods and services you can buy with your income.
c. different levels of inputs needed to produce specific level of output.
d. none of the above.
b. the affordable combinations of goods and services you can buy with your income.
You might also like to view...
The magnitude of the slope of the budget line is equal to the ________ or ________ of the good plotted on the ________ in terms of the other good
A) relative price; marginal cost; y-axis B) relative price; total cost; y-axis C) relative price; opportunity cost; x-axis D) price; opportunity cost; x-axis
If income is equally distributed, the Gini ratio is zero
Indicate whether the statement is true or false
Which of the following is an example of a public good?
A) a lighthouse B) a box of cookies C) any kind of public transportation D) the subway
If Nate takes out a $5,000 loan for one year at 10 percent annual interest, the principal is:
A. $5,000. B. $5,500. C. $500. D. $1000.