In Drawing a Budget Line It Is Assumed That

question 239

Multiple Choice

In drawing a budget line it is assumed that:

• A)consumer preferences are fixed.
• B)the prices of the two products are variable.
• C)money income is fixed.
• D)consumer willingness to substitute between the two products is fixed.

---

Definitions:

Rent Expense

Costs incurred from leasing a property or space for business operations or personal use.

Rental Income

Earnings generated from leasing out property or equipment, recorded as income by the property owner or lessor.

Normal Balance

The aspect of an account, be it on the debit or credit side, designated for recording increments to the account.

Credit

An accounting entry that increases a liability or equity account, or decreases an asset or expense account.