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FIGURE 13- 1

question 96

Multiple Choice

FIGURE 13- 1 FIGURE 13- 1 -Refer to Figure 13- 1.Which point shows that 100% of families earn 100% of the income? A) A B) B C) C D) D E) E
-Refer to Figure 13- 1.Which point shows that 100% of families earn 100% of the income?

Definitions:

Budget Line

A graphical representation that shows all possible combinations of two goods that can be purchased with a given income and prices.

Commodity 1

A generic term for a raw material or primary agricultural product that can be bought and sold, such as copper or coffee.

Commodity 2

Typically refers to a basic good used in commerce that is interchangeable with other goods of the same type.

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can afford given their income and the prices of the goods.