Asked by Divya Patel on May 08, 2024
Verified
The alternative combinations of two goods that a consumer can purchase with a specific money income is shown by:
A) a production possibilities curve.
B) a demand curve.
C) a consumer expenditure line.
D) a budget line.
Budget Line
A graphical representation of all possible combinations of two goods that a consumer can afford given their income and the prices of the goods, illustrating the concept of trade-offs.
Money Income
The total amount of monetary earnings received by an individual or household over a specific period of time, including wages, salaries, and other earnings.
- Understand the concept of a budget line and how it represents consumer choices within income constraints.
Verified Answer
KS
Kadeidra StatonMay 09, 2024
Final Answer :
D
Explanation :
The combination of two goods that a consumer can purchase with a specific money income is represented by a budget line, which shows all possible combinations of the two goods that can be purchased at a given price level and income level. Therefore, the correct answer is D.
Learning Objectives
- Understand the concept of a budget line and how it represents consumer choices within income constraints.