A budget line shows the:
A. alternative combinations of two goods that a consumer can purchase with a given money
income.
B. alternative combinations of two goods that will yield the same level of total utility to a
consumer.
C. quantities of a particular good that a consumer will buy at various prices.
D. ratio of money income to product price.
Answer: A
Economics
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Assume you have $2,000 in a savings account at the beginning of the year and the price level is equal to 100. If the price level is equal to 95 at the end of the year, the real value of your savings is closest to
A. $1,900. B. $1,905. C. $2,105. D. $2,095.
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