Any Combination of Goods Lying Outside of the Budget Line

question 265

Multiple Choice

Any combination of goods lying outside of the budget line:

• A)implies that the consumer is not spending all of his income.
• B)yields less utility than any point on the budget line.
• C)yields less utility than any point inside the budget line.
• D)is unattainable, given the consumer's income.

---

Definitions:

Moon Illusion

A visual phenomenon which causes the Moon to appear larger near the horizon than it does higher up in the sky.

Texture Gradient

A depth cue based on the gradual reduction of detail that occurs in surfaces as they recede from the observer, suggesting distance.

Size Constancy

A perceptual phenomenon in which the perceived size of an object remains constant, despite changes in the distance or size of the retinal image.

Frequency

In physics, the number of occurrences of a repeating event per unit time, often measured in Hertz (Hz).