Which of the Following Best Explains Why the Expenditure Line

question 116

Multiple Choice

Which of the following best explains why the expenditure line intersects the 45-degree line?

• A)The slopes of both lines are the same.
• B)The slope of the expenditure line is greater than the slope of the 45-degree line.
• C)The slope of the 45-degree line is greater than the slope of the expenditure line.
• D)The slope of the expenditure line is greater than 1.
• E)The slope of the expenditure line is negative.

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Definitions:

Personal Benefits

Advantages or gains that accrue to an individual, which can be of financial, physical, or emotional nature.

Selfish Desires

Individual wants or motivations focused on personal gain, often at the expense of others.

Economizing Behavior

The process of seeking to achieve maximum utility for minimal expenditure, or making decisions that reflect an optimal allocation of resources.

Satisfaction

The feeling of pleasure or fulfillment that comes from meeting needs, desires, or expectations.