A Budget Line Identifies Combinations of Two Goods That a Consumer

question 133

Multiple Choice

A budget line identifies combinations of two goods that a consumer

• A)will purchase if the prices are low enough.
• B)will purchase, given his or her preferences.
• C)wants to purchase.
• D)is able to purchase, given his or her income and prices.
• E)has purchased, given his or her income and prices.

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Definitions:

Freedom

Freedom is the power or right to act, speak, or think as one wants without hindrance or restraint, often considered a fundamental human right.

Constraint

A limitation or restriction on actions, options, or decisions, often imposed by external factors or structures.

Norms

Accepted standards of behavior within a group that are considered normal, guiding the actions of its members.

Roles

Roles are the behaviors, obligations, and privileges attached to a social position, guiding how individuals are expected to behave in certain contexts.