The budget constraint represents:
a. all possible consumption combinations of goods that someone can afford when all income is spent.
b. a single consumption combination of goods that someone can afford when all income is spent.
c. all possible consumption combinations of goods that someone can afford when disposable income is spent.
d. all possible consumption combinations of goods that society can afford when all income is spent.
a. all possible consumption combinations of goods that someone can afford when all income is spent.
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Demand for a good is said to be inelastic if the quantity demanded increases slightly when the price falls by a large amount
a. True b. False Indicate whether the statement is true or false
Economists believe that the Consumer Price Index tends to overstate the actual rate of inflation
a. True b. False Indicate whether the statement is true or false
The proper level of government intervention is unclear when dealing with a monopoly
a. True b. False Indicate whether the statement is true or false
Which of the following has the tightest relation with inflation?
A) H, the monetary base B) M1 C) M2 D) M3