The different combinations of any two goods that an individual can afford to purchase, given his income and prices, is shown by:

a. an indifference curve.
b. an indifference map.
c. a budget line.
d. a demand curve.
e. a supply curve.

c

Economics

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________ examines whether one variable has an effect on another by simply looking directly at the relationship between the two variables

A) Reduced-form evidence B) Organizational-model evidence C) Direct-model evidence D) Structural-model evidence

Economics

When, over a sustained period of time, the growth of aggregate business activity falls below what is considered the normal growth rate, the economy necessarily experiences

A) inflation. B) deflation. C) an expansion. D) a recession.

Economics