Budget Lines The Following Questions Refer to the Following Diagram, Which Shows

question 52

Multiple Choice

Budget Lines

The following questions refer to the following diagram, which shows the budget lines faced by a consumer last year and this year.

-Refer to Budget Lines.If the consumer purchased basket D last year and basket A this year,

• A) They are definitely better off this year than last year.
• B) They were definitely better off last year than this year.
• C) They could be equally well off in the two years.
• D) It is impossible to tell wether they are better or worse off,even if we knew the person's preferences.

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Definitions:

Creditor Beneficiaries

A creditor beneficiary is a third party that benefits from a contract wherein the promisor agrees to pay the promisee's debt to the third party.

Assignment of Rights

The transfer of legal rights from one party to another, often involving debts or benefits under a contract.

Assignment of Duties

The process of allocating responsibilities and tasks to individuals or groups in an organization.

Breach of Contract

The failure or refusal of a party to fulfill its obligations as outlined in a mutually agreed-upon legal document.