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
Economics
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________ attempts to reduce negative externalities by ________
A) Negotiation; discovering who has which rights B) Negotiation; creating new rights C) Legislation; creating new rights D) Legislation; discovering who has which rights
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Refer to Figure 4-1. If the market price is $2.00, what is the consumer surplus on the first burrito?
A) $0.50 B) $1.00 C) $2.00 D) $7.50
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