In Order to Draw an Individual's Budget Line, We Must

question 243

Multiple Choice

In order to draw an individual's budget line, we must know

• A) prices and preferences.
• B) prices and income.
• C) income and preferences.
• D) prices, income, and preferences.

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Definitions:

Form 1120S

A tax document used in the United States to report the earnings, losses, and dividends of S corporation shareholders.

Corporation

A legal entity that is separate and distinct from its owners. Corporations can own property, incur debts, sue, and be sued.

Permanent Accounts

Accounts in the general ledger that are not closed at the end of the accounting year, such as assets, liabilities, and equity accounts.

Temporary Accounts

Accounts used to track transactions within a specific accounting period, closed out at the end of the period, such as revenues, expenses, and dividends.