The vertical and horizontal axes intercepts of the budget line represent the:

a. quantity of goods that will be purchase if only that good is purchased.
b. preference of one good compared to another good.
c. quantity of each good that is outside the consumer's income.
d. only two choices that will spend the entire budget.

a

Economics

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Refer to Figure 11.2. Suppose that Ca = 40, MPC = 0.8, I = 10. Equilibrium income is

A) 40. B) 50. C) 250. D) 400.

Economics

Under a fixed exchange rate regime, if a country's central bank runs out of international reserves, it cannot keep its currency from

A) depreciating. B) appreciating. C) deflating. D) inflating.

Economics