The Maximum Combinations of Goods and Services a Consumer Can

question 158

Multiple Choice

The maximum combinations of goods and services a consumer can buy because he or she has a limited amount of money to spend is called the

• A)production possibilities.
• B)marginal propensity to consume.
• C)maximum total utility curve.
• D)indifference curve.
• E)budget constraint.

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Definitions:

Economic system

The organized way a society or nation allocates resources, produces goods and services, and distributes wealth among its members.

Technology

Anything that provides an artificial means to achieve a given end or result.

Industrialization

The transformation from agrarian-based economies to those dominated by industry and machine manufacturing, significantly altering societal structures and ways of life.

Economic system

The structured and organized way a society decides on the production, distribution, and consumption of goods and services.