The Budget Line

question 69

Multiple Choice

The budget line

• A)shows the limits to a household's consumption choices.
• B)shows the household's total utility.
• C)is downward sloping because it illustrates decreasing marginal utility.
• D)shows how a household's consumption choices change as income changes.
• E)shifts outward as total utility increases.

---

Definitions:

Insurance Cost

The expense incurred to provide an insurance coverage, encompassing premiums, deductibles, and any other charges related to maintaining the policy.

Operating Cycle

The amount of time it takes for a company to turn its inventory into cash flows from sales.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a given period.

Accounts Receivables

Outstanding payments owed by clients to a company for goods or services that have been delivered, but payment has not been received.